By Wasim Omar
3:13 AM UTC
Following yesterday’s impressive 16.4% gain Vyant Bio, Inc. (NASDAQ: VYNT) further rushed up to a 51.1% climb by pre-market hours. This heavy growth spurt has caused a spur amongst the market, and especially amongst bulls, betting long positions on VYNT. This bullish trajectory traces back to late January, with the stock climbing an impressive 35% in the last two weeks. The biotech ‘drug discovery’ firm has been one that is under the spotlight, especially amongst investors focusing on pharmaceutical growth opportunities. Vyant Bio’s recent breakthrough collaboration addressing Parkinson’s disease has led to the sudden hype surrounding the stock, driving up the price.
The extraordinary surge in VYNT price presumably links to a breakthrough announcement from early this morning. This announced a strategic partnership with OrganoTherapeutics to work towards a treatment for Parkinson’s disease. The firm specializes in organoids that are potentially critical in the treatment of neurological disease, which could accelerate development efforts. With the success of both partners in research in this area, the likelihood of joint research success could presumably increase. Given the widespread nature of Parkinson’s, a breakthrough in this domain could result in an explosive growth realization for VYNT. Given this breakthrough, market participants have been eager to bet on the success of the company, given the recent update.
Despite the recent breakthrough, social media chatter reveals slight skepticism regarding the degree to which this growth will sustain. The market evidently stands divided, despite the price explosion seen. These concerns are warranted, as the growth anchors to a single announcement by Vyant. Financials over the years do not indicate an improvement in earnings, nor in liquidity position, which is a clear red flag. However, traders are aware that the nature of pharmaceuticals is favorable for risk-tolerant investors ready to take speculative positions. Clinical trial breakthroughs vastly enhance growth potential, which market bulls anticipate for VYNT.
VYNT prices surged in today’s pre-market, following an announcement of a strategic partnership, working towards a treatment for Parkinson’s disease. Market bulls are clearly anticipating the news to yield heavy future gains, given the nature and market size of Parkinson’s. Despite the surge, however, social media chatter reveals a divided view towards the prospects of the stock, with the current growth trend described as speculative.