Seelos Therapeutics Inc (NASDAQ: SEEL) had an incredible week in the market last week after announcing the acquisition of rights to a new product. However, today, the stock isn’t having the best of days.
With losses of more than 10%, many are wondering if it’s time to abandon ship or buy more! Today, we’ll talk about:
- Why SEEL was up last week and why the stock is falling today;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why SEEL Stock Gained Last Week And Why It’s Falling Today
As mentioned above, Seelos Therapeutics had an incredibly strong week last week after announcing an asset acquisition. In mid-week, the company said that it has acquired an exclusive license to IP owned by The Regents of the University of California.
The IP specifcally relates to a technology that was created by UCLA. The technology surrounds a family of peptide inhibitors that were designed to target the aggregation of alpha-synuclein (a-synuclein).
SEEL said that it plans on studying the technology as a potential option for patients with Parkinson’s diesease. The company will also be evaluating the technology as an approach in other disorders having to do with the central nervous system.
The new program, dubbed SLS-008, will assess the treatment, following up on strong pre-clinical data that provide supportive evidence in its ability to slow prograssion of PD. So, why is the stock falling?
Well, in the market, movement tends to happen through a series of overreactions. SEEL has seen dramatic gains since announcing the acquisition of the license. However, many are starting to take profits, pushing the stock down. Nonetheless, the stok seems to be testing a new level of support and may rebound relatively soon.
What We’re Seeing From The Stock
As mentioned above, today isn’t shaping up to be the best day in the market from Seelos, with the stock seeing some pretty big declines. As is just about always the case, our partners at Trade Ideas were the first to alert us to the declines. Currently (9:12), SEEL is trading at $3.00 per share after a loss of $0.39 per share or 11.50% 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 partiuclar, we’re interested in following the story surrounding the company’s continued work to expand on the newly acquired asset and push it through the development process. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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