Athersys, Inc. (NASDAQ: ATHX) Stock Is Meeting Resistance

Athersys ATHX stock newsAthersys, Inc. (NASDAQ: ATHX)

Athersys had an incredible day in the market yesterday; climbing by more than 10% on positive news. However, today the story seems to be a bit different. After a sharp morning peak, it seems as though the stock has hit a bit of resistance. However, the sky isn’t falling. In the long run, ATHX actually looks pretty good, here’s why…

ATHX Will Present Phase 2 Trial Data Of MultiStem Therapy

The reason stocks are up is simple, Athersys, like many other biotech companies is in the clinical phase working to produce new treatments. However, one of those treatments may be getting closer to production. ATHX announced that they will be presenting Phase 2 data of its MultiStem Therapy on April 19th at the European Stroke Organization Conference. If the new results are anything like previous trial results, investor excitement will ensue. Previously, ATHX reported that the treatment reduces inflamation in the ischemic area and can protect damaged or injured cells, including brain tissue.

Why This Is So Big

While the experts may use large medical terms to explain what this medication does; if previous results are any indication, it’s going to be incredibly effective at treating stroke. So, if the treatment is indeed effective, the company will be tapping into a market of more than 2 million people in America, Japan, and Europe; and the industry is huge. In the United States alone, medical expenses revolving around stroke come up to more than $50 billion annually; a number which is growing rapidly.

Why This Resistance Isn’t Such A Big Deal

Yesterday, ATHX had a massive day in the market. It’s only natural that after massive growth we’ll see slight corrections. The reality is that the stock really hasn’t fallen much; especially when you compare it to yesterday’s losses. So, overall, yes resistance is there. Is it an issue? Not in this case, we’ll see a breakout soon.

What To Expect From ATHX Moving Forward

Firstly, I expect April 20th to be a great day for Athersys in the market. If the Phase 2 results are anything like analysts are expecting, investors are going to be happy and start pumping funds into the stock. As a result, we should see a nice breakout on the 20th; again, if the results are positive. Over the long term, this one looks like a strong option as well. As mentioned above, Stroke treatment is a huge market; responsible for more than $50 billion spent in the US alone annually. If this treatment is what we’re expecting it to be, ATHX will become a big part of that market; it’s only a matter of time. So, in both short term and long term outlooks, it looks like this one’s a bull!

What Do You Think?

Where do you think ATHX is headed and why? Let us know in the comments below!

Image Credit

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!
* indicates required

Add Comment