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The biotechnology stock Antibe Therapeutics (TSX:ATE) has been nosediving, with the highest drop in price by nearly 76 per cent over the past three months.
On August 3, 2021, the stock closed at C$ 1.00 with a one-day trading volume of 4.31 million shares. This was a single-day drop of nearly 71 per cent from its previous close of C$ 3.39 apiece.
The company is leveraging its hydrogen platform to develop medicines to cure inflammation and pain. In addition, the biotech company is gearing up for the Phase III trials of otenaproxesul, an anti-inflammatory drug that releases hydrogen sulfide, which is planned to be implemented in 50 locations in the US and Canada.
As per an update on August 3, 2021, the absorption, metabolism, and excretion (AME) study of otenaproxesul had been paused as it exceeded a safety protocol.
Following this announcement, the stocks of this biotechnology firm fell, signalling a panic among investors.
ATE Stock Performance
The pharma company, Antibe Therapeutics (TSX:ATE), is developing safer medication and therapies to heal inflammation from different medical conditions.
The company holds a market cap of C$ 51.62 million with 51.63 million outstanding shares.
The stock price crumbled down by 70 per cent to close at C$ 1.00 on August 3, 2021, while the previous close price was C$ 3.39 apiece.
ATE stock is trading nearly 87 per cent below its 52-week high of C$ 7.52 attained on February 17, 2021. It is about 67 per cent below its 52-week low of C$ 3.05, which is hit on October 29, 2020.
The stock price is down nearly 75 per cent in the last six months and 69 per cent in the last nine months.
ATE Financial Performance
The financial statement posted total revenue of C$ 9.7 million in FY2021, marginally up from C$ 9.67 million in FY2020. The total revenue in the fourth quarter is FY2021 was C$ 2.95 million.
The pandemic impacted the sales and business operations, as per management’s comments.
Thus, the net loss increased to C$ 26.3 million in FY2021 from C$ 19.3 million in FY2020. This could be understood to be primarily driven by higher research and development costs and non-clinical studies.
The company highlighted the commencement of Phase III trials of otenaproxesul, an analgesic, and anti-inflammatory drug. Moreover, a strategic deal with Nuance Pharma was signed to commercialize otenaproxesul in the Greater China region.
The price-to-book (P/B) ratio stands at 1.02
