Athersys, Inc. (NASDAQ: ATHX)
Athersys, Inc. stock recently climbed following an announcement that they would provide Phase 2 data from a new treatment on April 19th at the European Stroke Organization Conference. After the climb, the stock started to reach resistance as investors started to think about what the presentation means. In all reality, on April 20th, ATHX will either climb high or fall hard. Here’s why…
ATHX Growth Hinges On MultiStem Results
As with any biotech company, positive testing results of a therapy do great things for the stock while poor results drive the stock down. In this particular case, Athersys will be announcing the results of testing for its MultiStem therapy in patients suffering from severe ischemic stroke caused by blockage of blood flow to the brain. The idea is that the therapy will promote new tissue growth and help to alleviate patients suffering from the condition and break the clots causing the strokes.
The study consists of testing on 140 different patients. Some will be given the treatment while others will be given a placebo; each patient given either the MultiStem treatment or the placebo will receive treatment 1-2 days after a stroke occurs. The ultimate goal of the study is to show that after 90 days, the MultiStem treatment helps patients to recover faster than the placebo offered.
What Traders Should Be Watching Out For
There’s no doubt that on April 20th, we’re going to see a strong trend in ATHX moving up or down. If the MultiStem treatment results aren’t positive, we can expect to see a major decline in the price of the stock. On the other hand, if the results of the study are positive, we can expect to see massive gains. Either way, as a trader, you’ve got the opportunity to capitalize on the trend; so, watch what happens very closely.
What I Think Will Happen
In the world of biotech, I always like to think positive when it comes to study results. The reality is that not only do positive results create gains, they show that medical advances are being made and less people will suffer moving forward. In all honesty, that’s why I love to follow biotech in the first place. With that said, I’m expecting to see positive results; but that’s all speculation. We won’t know the facts until they’re released on the 19th!
What Do You Think?
Do you think that the clinical results will be positive or negative? Is Athersys a good investment long term? Why? Let us know in the comments below!