Little-known biotech company storm treatment inc. The liver cancer trial results sent the stock soaring 3,973% and then plummeting the next day, putting it on track for its best week ever.
Wall Street cheered as the drug developer’s shares soared to $9.77 on Wednesday. explain Its experimental cancer treatment is a cocktail of two drugs Roche Holdings The medicine works better than either medicine alone. The study by Roche pushed Tempest’s market capitalization to $130 million from a measly $3 million at the previous day’s close.
Tempest’s shares have fallen to such highs in the last two trading sessions as waning investor enthusiasm and a broader market selloff in risk assets hit the risky biotech sector. The company’s current market capitalization is $54 million, still more than 16 times what it was before the jump.
William Blair analyst Matt Phipps said Tempest was “valued at an almost unbelievable low on this readout” as investors remain skeptical of early findings. . “The company’s blockbuster cancer drug opportunity remains significantly undervalued,” he wrote in a note on Wednesday.
Analysts tracked by Bloomberg are generally bullish on the company, with four giving Tempest the equivalent of a buy rating. The average of three price targets suggests the stock could more than quadruple from its current level of $4 per share.
HC Wainwright & Co. analyst Joseph Pantginis expects Tempest to be worth about $770 million. However, Pangenis said his valuation was based only on a 25% chance the trial was expected to be successful, which he called “conservative.” This week he raised his price target to $47, the highest of three analysts.
“There remains significant upside potential,” he wrote, citing the liver cancer drug market and the potential for Tempest’s drug to become part of patients’ first-line treatment.
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