Biotech firm Palisade Bio (NASDAQ:PALI) came into significant focus among investors on Tuesday and ended up with gains of as much as 30% amidst heavy interest. Considering the magnitude of the gains made by the stock, it may be a good time for investors to consider taking a look at the announcement that led to the rally.
Trading Data
On Tuesday, PALI stock surged 30.43% to $1.05 with more than 58.26 million shares, compared to its average volume of 2.09 million shares. The stock moved within a range of $1.0100 – 1.5300 after opening trade at $1.33.
Palisade Bio (Nasdaq: PALI) Receives FDA “Study May Proceed” Letter for Pivotal Phase 3 Clinical Trial Evaluating LB1148
The company announced yesterday that the regulators in the United States had awarded it with a clearance for the Phase 3 clinical trial of its product LB 1148, its lead candidate. The letter sent in by the United States Food and Drug Administration noted that the ‘Study May Proceed’.
Now that the company has got the all-important clearance, it is going to work on commencing the late stage study into the product. The product in question is meant for helping patients with the normalisation of their bowel movements after they go through an abdominal or bower surgery.
It goes without saying that the announcement from the company was a significant one and the reaction from the market was also perhaps understandable. It is now going to be interesting to see if the Pallisade Bio stock can manage to hold on to its momentum and add to its gains today.
Key Quote
“In two separate Phase 2 trials—one in cardiovascular surgery patients and one in GI surgery patients —LB1148 has demonstrated statistically significant acceleration of return of GI function. These data have laid important groundwork for proceeding to our Phase 3 trial,” said Tom Hallam, Ph.D., Chief Executive Officer of Palisade Bio.
Technical Data
PALI stock is trading above the 20-Day and 50-Day Moving averages of $0.97 and $1.04 respectively. However, the stock is trading below the 200-Day moving average of $2.33.
