ASLAN Pharmaceuticals (NASDAQ: ASLN) moved upward an impressive 73.58% and has reached a share price of $7.69. ASLAN had previously closed at $4.43. This all happened in the pre-market Monday trading session.
Aslan Pharmaceuticals Ltd was founded in 2010. It is a biotech pharmaceutical company with headquarters in Singapore. ASLAN (NASDAQ: ASLN) specializes in clinical-stage immunology and oncology for the treatment of patients. Specifically, it has a focused-area-of-expertise in running test treatments for atopic dermatitis and small-molecule inhibitor that targets oncology.
ASLAN Phase 1 Trial Successful!
The jump in the pre-market trade arose due to an announcement made today about a certain treatment called ASLAN004 which is a monoclonal therapy used essentially to treat atopic dermatitis and other immunology indications. The press-release that is referring to the scientific-specific terminology is highlighted here.
“positive interim unblinded data from the three dose cohorts of its ongoing randomized, double-blind patio placebo-controlled multiple ascending dose study of ASLAN004 for the treatment of moderate to severe atopic dermatitis.”
In laymen’s term what this string of scientific-pharmaceutical jargon means is that the monoclonal therapy ASLAN004 was run through several excessive tests where test-subjects were placed in the control group and placebo group, where the patients placed in the control group were given ASLAN dosage that showed efficacy compared to the group which was given placebo effect.
Biotech Penny Stock
The ASLAN pharmaceutical is a penny stock and penny stocks have a tumultuous reaction towards business cycles. When the stock market seems to be plummeting or breaking down, these biotech penny stocks tend to soar and they plunge when the market is rising. These penny stocks have an inverse relation with the fall & rise of the stock market because the factors they depend on are different.
Another factor that is really associated with the rise and decline of these biotech penny stocks is that pharmaceutical companies have clinical tests and trials that they run for different drugs and treatments. When news of the success of the treatment or (FDA) approval of the drug is verified then this news really soars up the prices of the stock as the sentiment around the stock becomes positive.
$18 million security purchase agreement
Investors also look forward to news of mergers, deals, business licensing, and approvals to determine the movement of the stock. On 25th February, ASLAN pharmaceuticals had announced the security purchase deal that it entered into through a private placement to Surveyor Capital and Vivo Capital, which are relatively new institutional investors. The agreement allows the acquiring and raising of $18 million gross proceeds resulting from the sale of its ordinary purchases.
The terms of the securities purchase agreement state that the company will issue 5,113,636 American Depository Shares at a price per share of $3.52 which is equivalent to the last closing price of the Company’s ADS.
Watch Out For Second Phase Trials
This interim data is from the ongoing study of the phase 1 clinical trial test which is very significantly positive news. However 1st phase also means that there are more phases to come which will determine the true authenticity and efficacy of the ASALN004, thus ASLAN (NASDAQ: ASLN) stock should be the biotech penny stock that investors need to keep a close eye on, this year. The pharmaceutical company plans on starting the 2b phase of the trials this year, which will be sooner now due to a successful first phase trial as compared to prolonged delay if the trials were unsuccessful.