Achieve Life Sciences Inc (NASDAQ: ACHV) is having an incredibly rough start to the tradin session this morning. However, no news has been released. While there’s a decent reason for the declines, we believe that this is an opportunity to get in on long-run gains at a discount. Today, we’ll talk about:
- What’s happening with ACHV;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
What’s Going On With ACHV?
As mentioned above, Achieve Life Sciences is having a rough start to the trading session this morning, but has released no news. So, what’s the deal?
Well, the declines are ultimately the result of the fact that investor excitement is starting to cool off. The stock ran nearly 90% on Friday after the company announced positive data, and after a run like that, it’s not uncommon to see some declines.
Nonetheless, we believe that these declines likely present a strong opportunity for gains.
At the end of the day, the nearly 90% run experienced by ACHV on Friday wasn’t an out of the blue, caused by nothing kind of run. The gains came after the company released smoking cessation data from a key clinical trial.
The company released the results of a clinical study in which patients were provided with cytisinicline as a smoking cessation aide. The results were overwhelmingly positive.
While subjects were not asked to quit smoking or even set a quit date, the drug led to a large reduction in the amount of cigarettes smoked per day by subjects. In fact 46% of subjects quit smoking all together. The drug also proved to be safe and well-tolerated.
In a statement, Cindy Jacobs, CMO at ACHV, had the following to offer:
Given the short 25-day treatment period, the abstinence rates observed are impressive, particularly since subjects were not required to commit to quitting and received minimal behavioral support during the study. These results continue to support our belief that cytisinicline could be a well-tolerated and effective potential treatment option for the millions of people who are battling nicotine addiction.
This is overwhelmingly positive news. After all, the smoking cessation market is a massive one, and a treatment like cytisinicline isn’t currently available. Should the drug be approved by the FDA, the asset could be a big revenue driver.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to ACHV, the news proved to be overwhelmingly positive. The strong data sent the stock running more than 80% on Friday.
With that in mind, it’s not uncommon to see some cooling off, leading to some declines before gains can continue. That’s exactly what we’re seeing today.
As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (8:09), ACHV is trading at $2.93 per share after a loss of $0.37 per share or 11.21% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ACHV. In particular, we’re interested in following the story surrounding the continued development of cytisinicline as results thus far have been overwhelmingly positive.
Should the drug be as good as it appears to be, the approval of the treatment will likely lead to strong opportunities ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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