Aytu BioPharma Inc. (AYTU) stock finally rebounded in the after-hours on Friday following its continued downfall. In the regular trading session, the stock went down to a new low of $0.6120 following which, it rebounded in the after-hours to add 9.42%. Thus, the stock was then trading at a value of $0.7014 a share at a volume of 605.46K shares.
No official news or SEC filing is responsible for the rebound as the previous news and filing date back to April 19.
What is Happening with AYTU?
On April 19, the company announced fast track designation for its AR101 for the treatment of Vascular Ehlers-Danlos Syndrome (VEDS). The news caused a spike in the stock’s volume as well as the per-share price. The huge upsurge in the stock then ultimately resulted in corrections. Since the stock entered the red on April 19, it has been falling down continuously to reach a new low on April 22. Hence, it seems the dip in the stock instigated investors to buy AYTU.
Seemingly, external factors like social media discussions and stock sentiment might have interested the investors in the stock as it reached a new low. Resultantly, the stock rebounded in the after-hours as investors began purchasing the dip.
AR101’s Fast Track Designation
VEDS is a serious, life-shortening condition with no approved treatments today. With the receipt of Fast Track Designation from the FDA for AR101 in VEDS, the company now plans to commence its pivotal PREVEnt study. Currently, the company is working on the operational elements of the study to initiate it as soon as possible. At the current rate, AYTU expects to commence dosing patients in the study in late 2022 or in the start of 2023.
Moreover, the PREVEnt Trial will evaluate VEDS patients treated with AR101 against those treated with standard of care. The total duration of the study is expected to be roughly 30 months including the enrollment period.
AR101 is a protein kinase C beta inhibitor with Orphan Drug Designation in the U.S. as well as Europe. Furthermore, its IND application has also been accepted in the U.S. for a registration study.
After spiking up on the Fast Track Designation news of AR101, AYTU had been in the red for a number of days. But the dip in the stock finally called for a rebound on Friday as it reached new lows. Therefore, the stock rebounded in late trading on Friday.