Late stage biotech company CytoDyn Inc (OTCMKTS:CYDY) seems to have come back in favour among investors and that can be gauged from the price action in its stock on Thursday. Following a key announcement from the company with regards to a litigation, the CytoDyn stock came into focus and ended up with gains of as much as 4%.
Trading Data
On Thursday, CYDY stock ended up by 3.77% to $1.10 with more than 1.65 million shares, compared to its average volume of 2.39 million shares. The stock has moved within a range of $1.0500 – 1.1100 after opening trade at $1.08.
CytoDyn Announces Favorable Ruling Granting Injunction Against Former CRO
The company announced that the motion for a preliminary injunction from CytoDyn against NSF International was granted by the United States District Court for the District of Maryland. It should be noted that Amarex Clinical Research, a subsidiary of NSF International has also been included in the motion.
Amarex had been responsible for providing CytoDyn with clinical trial management services over the course of the past eight years and had taken care of a number of trials. However, in the aforementioned motion, CytoDyn has alleged that Amarex did not do is duties as had been enumerated in the master services agreement. It may be a good idea for investors to keep an eye on the proceedings regarding this case. It now remains to be seen if the CytoDyn stock continued to add to its gains this week or not.
Key Quote
Nader Pourhassan, Ph.D., CytoDyn’s President and Chief Executive Officer, commented, “We are pleased with the Court’s ruling and are focused on the positive momentum of our pipeline. It is gratifying to see that Amarex will be held accountable for its numerous shortcomings in delaying the potential of the availability of leronlimab to thousands of patients for multiple indications. By doing so, we believe they also harmed our shareholders. Upon completion of our court-granted audit, if any damages are discovered which are due to negligence on behalf of Amarex, we will aggressively pursue all and any legal action.”
Technical Data
CYDY stock is trading below the 20-Day and 50-Day Moving averages of $1.10 and $1.21 respectively. Moreover, the stock is trading below the 200-Day moving average of $1.84. The stock is down 9% in the past month.
