Following a hard tumble of 40%, during the week, stock for Connect Biopharma Holdings Limited (NASDAQ: CNTB) further fell yesterday. The stock closed at 22.2% beneath its previous close price, continuing the burn-up of capital that had persisted throughout. The after-hours of trade, however, saw a steady bounce-back, adding up to 17.7% in price for CNTB.
Chinese Stock Scare and CNTB
Following a rough patch in the last months, CNTB got caught up in a Chinese stock crash on Monday. This was a result of investors’ concerns owing to China’s association with the Russian federation, amidst global sanctions. The panic towards a potential delisting saw the market collectively distancing themselves from Chinese stocks at large. However, after these fears had subsided, the market once again took to flocking towards recently undervalued stocks such as CNTB.
Appointment of New CMO overseeing Connect BioPharma’s Pipeline
Connect Biopharma holds a relatively high-potential pipeline with a number of innovative solutions to inflammatory diseases. Its recently announced, earlier this month, the appointment of Chief Medical Officer, Chin Lee. Holding vast experience in immunology and autoimmunology, the company’s perspective pipeline is likely to see an enhancement. The move clearly comes as a correction to earlier blunders the company committed in regards to clinical data announcements. Expert supervision under Lee would ensure a more professional approach to these milestones, that cater to broader investment sentiments.
CNTB Plummet in November
CNTB took a hard tumble last year in November, an event from which it never managed to recover from as of yet. This followed the announcement of positive results for a much-awaited clinical trial for severe atopic dermatitis treatment. However, the announcement was accompanied by little hard data to substantiate the claims being made, which raised skepticism, and saw traders heavily drive the price down. As a result, CNTB sank by 57% in a single day. These one-off events evidently prove fatal to the sustainability of the company. As is apparent by the hiring of CMO Chin Lee, Connect BioPharma stands committed to safeguarding itself from similar recurrences.
After a volatility-laden downward swing yesterday, CNTB apparently heads towards a bounce-back in the after-hours session of the market. Panic over Chinese stocks and the Russian crisis continue to influence market sentiment, dividing traders in their approach. The recent announcement of a new CMO brings fresh promise as Connect BioPharma stands ready to avoid previous blunders.