Seelos Therapeutics Inc (NASDAQ: SEEL) has been an interesting stock to watch as of late. After displaying strong gains toward the end of last week, the stock dipped in the market yesterday before running back for the top in the pre-market his morning.
There’s good reason for all of the excitement. The company recently announced an asset acquisition that could become a high-value treatment should development go well. Today, we’ll talk about:
- The asset acquisition;
- what we’re seeing from SEEL stock as a result; and
- what we’ll be watching for ahead.
Why Investors Are Excited About SEEL Stock
As mentioned above, the roller-coaster ride on Seelos Therapeutics has been an interesting one to follow in the market. The ride started last week, after the company announced that it had acquired exclusive rights to a new asset.
In a press release, the company said that it had exclusively licensed a family of peptide inhibitors from the Regents of the University of California. In the release, SEEL said that the peptide inhibitors were developed by a research team at UCLA.
In particular, these inhibitors target the aggregation of alpha-synuclein. This is a major component of Lewy bodies, which are protein clumps that are considered to be a hallmark in Parkinson’s Disease.
SEEL said that it plans on studying these inhibitors as a potential treatment option for patients with Parkinson’s Disease at first. Down the line, the company intends on assessing the treatment as an option in other indications.
According to the agreement, the company made an upfront payment of $100,000 for the acquisition. Moreover, it has agreed to pay royalties upon the commercialization of the treatment.
Since the announcement, the stock has seen quite a bit of movement. Looking past the daily ups and downs, the movement has been incredibly positive, showing shareholder support for the asset acquisition.
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. While the news surrounding Seelos Therapeutics is about a week old at this point, it is overwhelmingly positive.
After all, the new asset, if proven to be effective, can become a major bread winner for the company as the asset targets a difficult-to-treat indication with a high unmet medical need.
So, it’s not a surprise to see that excited investors are pushing the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:25), SEEL is trading at $3.89 per share after a gain of $0.69 per share or 21.56% 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 SEEL. In particular, we’re interested in following the story surrounding the company’s work to develop its newly-acquired asset. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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