The clinical stage, pharmaceutical company, NRx (NASDAQ: NRXP) Pharmaceuticals has been the talk of the town lately. It recently saw a significant 60% surge, which it has managed to sustain throughout the month of August. Some suggest that a further growth catalyst may very well take the stock to even greater heights.
Impressive Rise for NRXP
NRx Pharmaceuticals has been making the rounds across market chatter, with many investors discussing its stock prospects going forward. At the onset of August, the stock shot up from $0.51 to $0.82, in a 60% surge. What is most impressive about this jump is that NRXPP has maintained most of these gains all through August, still trading at these highs. What is most interesting about the jump is that there remains no identifiable catalyst that explains the jump. In fact, the company had been dealt a blow when the FDA refused to authorize its ZYESAMI drug for emergency use in Covid-19 treatment. However, the volume surge from 200,000 to over 25 million suggests NRXP gained meme-like popularity, in what seems to be a classic ‘pump and dump’ strategy.
Further NRXP Growth Catalyst
On Monday, a potential catalyst emerged, that many in the market have been discussing, and has pushed NRXP slightly up by 5%. The company had announced the reactivation of development in its psychiatry franchise. Within this class, there were several compounds in different research phases that had remained of low priority to management. This reorientation suggests a strategic shift, which could allow the company to gain access to the globally lucrative market of psychiatric medication.
NRXP achieved remarkable gains as the month began. No identifiable catalysts explain the rise, but the growth could have started off as a ‘pump and dump’ strategy, in which investors eventually realized the undervaluation cautions against selling. Many anticipate a further rise with the reactivation of psychiatry medication.