ChemoCentrix (CCXI) Stock Could Make A Huge Comeback

ChemoCentryx Inc (NASDAQ: CCXI) is headed for the top in the market this morning, making up for some of the dramatic declines seen on the stock Friday after a panel of experts was mixed with regard to an approval recommendation for the company’s autoimmune disease drug candidate. 

Nonetheless, Wall Street Bets members, and members of other social boards across the internet seem to be banding together, viewing recent declines as an opportunity. Here’s what’s going on:

Why CCXI Fell On Friday

Friday was a painful day for ChemoCentryx, with the stock plummeting throughout the day. The declines came after a panel of experts charged with giving the FDA their opinions with regard to the company’s autoimmune disease drug candidate, avacopan, was split on Thursday.

With a split decision, many wonder if the drug will actually make it to FDA approval, or if the FDA will take a harsher stance on their review, resulting in a rejection.  

If approved, avacopan will treat a rare disorder in which the small blood vessels in the patients’ bodies become inflamed.  

Unfortunately, the advisory committee was concerned about how the company designed its pivotal clinical study, suggesting that it would need to do additional testing for liver toxicity. Moreover, the advisory panel was mixed on whether or not the efficacy of the drug was enough to support approval. 

Retail Investors See Opportunity

With the advisory committee being mixed on whether or not to recommend, many on social message boards are suggesting that the stock is the center of increasing short interest, creating an opportunity for a short squeeze. 

In fact, the stock has appeared several times on the Wall Street Bets message board, as well as other message boards around the web, pointing to what could be a major opportunity for both short and long-term profits. 

Retail investors are also pointing to the mixed opinion itself as a bullish argument for the stock. Afterall, while the opinion was mixed, 10 members of the advisory committee suggested that the drug should be approved, suggesting that the efficacy and safety results do support an approval while only eight members of the committee suggested rejecting the drug. 

Some argue that while the mixed results of the advisory committee meeting are concerning, the vote to approve was stronger than the vote to reject, suggesting that there’s a stronger chance of approval than rejection. 

Not to mention, with the mixed results likely leading to heavy short interest, there’s a great opportunity to profit by kicking the shorts out of their positions. 

Final Thoughts

While the mixed opinion surrounding the approval of ChemoCentrix’s New Drug Application is concerning, there is potential for this to become a profitable opportunity. Again, the vote, all in all, was in favor of approval, albeit a mixed vote. So, there is a chance that approval will be the result. 

In the meantime, we’ve seen the strength of the retail community, and will likely continue to see it. With the retail community seemingly backing the company and its efforts against those who want to short the stock, what we could be seeing here is the very early makings of a short squeeze. 

All told, CCXI stock is one to watch closely. 

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