Although it is true that the Synthetic Biologics Inc (NYSEAMERICAN:SYN) stock corrected sharply on Tuesday and declined by as much as 4%, it should be noted that in the past week the stock is still up by 8%. It is a diversified clinical stage company and yesterday it had come on to the news cycle following a key announcement.
Trading Data
On Tuesday, SYN stock moved down 5.10% to $0.27 with more than 7.93 million shares, compared to its average volume of 1.89 million shares. The stock moved within a range of $0.2500 – 0.3150 after opening trade at $0.3090.
Synthetic Biologics Announces VCN Biosciences’ VCN-01 Receives Orphan Drug Designation for Retinoblastoma from the U.S. FDA
The company announced on Tuesday that VCN Biosciences had been awarded the Orphan Drug Designation for the VCN 01 product by the United States Food and Drug Administration. It was a major development for Synthetic Biologics considering the fact that it was not too long ago that the company had announced that it had signed up an agreement with regards to the acquisition of VCN Biosciences.
However, in this regard, it should be noted that the acquisition transaction can only be closed after certain prior conditions are met. The excitement with regards to the news from yesterday is understandable and it is going to be interesting to see if the stock can make a recovery today or not. At this point in time, it may be a good move to keep the stock in your watch lists.
Key Quote
Steven Shallcross, Chief Executive Officer and Chief Financial Officer of Synthetic Biologics, commented, “We are pleased to report that VCN’s VCN-01 was granted Orphan Drug Designation for retinoblastoma by the FDA. We believe VCN-01 may represent a novel rescue therapy for patients who fail standard therapy, or may be used as an adjunct to chemotherapy, to provide improved outcomes for these patients. We are highly encouraged by the preliminary clinical data thus far and look forward to conducting a pivotal Phase 2/3 trial in these patients following our expected completion of the acquisition.”
Technical Data
SYN stock is below the 20-Day and 50-Day Moving averages of $0.27 and $0.29 respectively. Moreover, the stock is trading below the 200-Day moving average of $0.44. The stock is down 35% in the past 3-month.
