Seelos Therapeutics (SEEL) Stock: Should You Worry About Profit Taking?

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Seelos SEEL Stock News

Seelos Therapeutics Inc (NASDAQ: SEEL) stock has been a bit of a roller coaster ride to watch as of late. After announcing an asset acquisition, the stock gained in multiples last week before seeing a series of up and down movements so far this week.

Now, the big question is, “Is this it? Are the meaningful gains over?” While this is a very difficult question to answer, we believe that profit taking is simply opening the door to more opportunity ahead. Today, we’ll talk about:

  • The asset acquisition that led to the gains in the first place;
  • why we believe that SEEL stock is going to see further movement upward;
  • what we’re seeing from the stock; and
  • what we’ll be watching for ahead.

The News That Led To SEEL Stock’s Run For The Top

As mentioned above, last week, Seelos made an impressive run for the top, gaining in multiples after announcing an asset acquisition. The asset was an exclusive license surrounding a family of peptide inhibitors.

The agreement was made with the Regents of the University of California. It surrounded peptide inhibitors developed by UCLA to target the aggregation of alpha-synuclein. This is a major component in Lewy bodies, or protein clumps that are a hallmark of Parkinson’s disease.

SEEL said that it plans on studying the inhibitors as a potential treatment approach in Parkinson’s disease. The company also plans on essessing the efficacy of the treatment in other indictions down the line.

In exchange for the asset, SEEL made an initial payment of $100,000. Moreover, it has agreed to pay royalties on sales should the exclusive licensing agreement lead to the development of any approved therapies.

Why The Stock Is Likely To Continue Upward

While the declines today can be quite painful for some, this is something that we’re used to seeing in the stock market. At the end of the day, Seelos saw a dramatic run in value last week. Considering this, it only makes sense that we would see some profit taking this week.

That profit taking started on Monday, with the stock in the red. However, on Tuesday, the stock made its way to higher highs before dropping more today. Considering the current patern, I believe that SEEL is closing in on a new level of support, from which it will likely climb to a new level of resistance.

Moreover, from a fundamental standpoint, there’s a very good reason for recent gains. After all, the new family of peptides have the potential to lead to multiple product candidates indicated for serious conditions for which there is a high unmet medical need. There is real value in that!

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What We’re Seeing From The Stock 

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