There was a sharp correction in the Pasithea Therapeutics (NASDAQ:KTTA) stock on Thursday as investors indulged in a bit of a selloff and it went down by as much as 6% as a consequence. That being said, it is also necessary to note that the biotech stock is still up by as much as 15% over the course of the past week.
Trading Data
On Thursday, KTTA stock ended lower by 6.40% to $1.17 with 2.53 million shares, compared to its average volume of 7.22 million shares. The stock moved within a range of $1.1400 – 1.2700 after opening trade at $1.27.
Pasithea Therapeutics Initiates New Chemical Entity Drug Development Program in Multiple Sclerosis
As it happens, the decline in the stock on Thursday actually coincided with a key announcement from Pasithea. The company announced yesterday that it had managed to come up with a new chemical entity or NCE development initiative.
In addition to that, the company also noted that Hooke Laboratories, which is based out of Massachusetts, has been roped in as the research partner for the same. It goes without saying that the announcement from the company was a significant one and it now remains to be seen how the research work with regards to the new chemical entity progresses.
However, the news did not come as a source of optimism for investors and the stock declined as a consequence. It is going to be interesting to see if the Pasithea stock can manage to make a comeback today.
Key Quote
“Our decision to initiate a program in MS is a strong strategic fit and a natural progression of our work and mission,” stated Dr. Tiago Reis Marques, Chief Executive Officer of Pasithea Therapeutics. “Prof. Steinman’s expertise, along with our capabilities in central nervous system disorders, position us well to develop a new approach for the treatment for MS.”
Technical Data
KTTA stock is trading below the 20-Day and 50-Day Moving averages of $1.36 and $2.01 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.39.
