ALZN & AEZS: Two trending biotechnology stocks on Friday

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ALZN & AEZS: Two trending biotechnology stocks on Friday

 ALZN & AEZS: Two trending biotechnology stocks on Friday
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Highlights

  • Aeterna Zentaris Inc. (NASDAQ: AEZS) develops diagnostic and therapeutic tests.

  • Alzamend Neuro, Inc. (NASDAQ: ALZN) develops treatment for neurodegenerative diseases and psychiatric disorders. 
  • Aeterna has been placed on NASDAQ’s non-compliance list.
     
  • On Thursday, Alzamend received FDA approval to conduct Phase 1 and 2 clinical trials for its vaccine candidate AL002.

Aeterna Zentaris Inc. (NASDAQ: AEZS) stock was up 9.35%, and Alzamend Neuro, Inc. (NASDAQ: ALZN) stock fell 12.01% in intraday trading on Friday.

AEZS traded at US$0.8201, and ALZN traded at US$2.7101 at 10:28 am ET. 

Aeterna Zentaris Inc. 

Aeterna is a biopharmaceutical company based in Summerville, South Carolina. The company develops and sells diagnostic and therapeutic tests. 

The stock’s 52-week highest and lowest prices were US$3.62 and US$0.29, respectively. However, there was no apparent reason for the stock’s sudden surge on Friday.

On July 28, Aeterna received notice from the Listing Qualifications Department of Nasdaq for non-compliance with its minimum listing rules. It has been since placed on its non-compliance list.


The notice pertains to its closing bid. The stock’s closing bid has been less than US$1.0 for 30 consecutive business sessions on the date of the notice. Although there was no immediate impact on the listing, the company must fulfil its obligation within the 180-day grace period.  

In case of non-compliance, the company may face delisting. However, since Thursday, the stock has been surging. It was 26 percent to US$0.75 at the market close on Sep 30.

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Aeterna earned total revenue of US$0.60 million in the quarter ended June 30, 2021, against US$0.07 million in the June quarter of 2020. The revenue came from licensing and royalty income. 

However, the consolidated net loss was US$(2.0) million or US$(0.02) per common share basic, compared to the net loss of US$(3.5) million or US$(0.15) per common share basic, in the June quarter of 2020. The cash and cash equivalents were US$69.9 million as of June 30, 2021.

Aeterna was founded in 1990 and went public in December 1995. Aeterna’s market capitalization is US$112 million. 

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Aeterna Zentaris Inc. (NASDAQ: AEZS) and Alzamend Neuro, Inc. (NASDAQ: ALZN): Two trending biotechnology stocks.

Source - pixabay

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Alzamend Neuro, Inc. 

Alzamend is a biopharmaceutical company based in Tampa, Florida. It develops novel products for treating neurodegenerative diseases and psychiatric disorders. 

Its 52-week highest and lowest stock prices were US$33.55 and US2.22, respectively. 

On Thursday, the company announced that it received FDA approval to conduct Phase 1 and 2 clinical trials for its vaccine candidate AL002, a cell-based therapeutic vaccine to protect patients from Alzheimer’s.

The stock gained 35% after the announcement on Sep 30. It closed at US$3.08, with a whopping share volume of 58,912,470. 

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For the three months ended July 31, 2021, the company incurred a net loss of US$(2.32) million or US$(0.03) per common share diluted, compared to the net loss of US$(1.31) million or US$(0.02) per common share diluted, for the same quarter of 2020.

It earned no revenue in the July quarter for 2021. As of July 31, 2021, the company had cash of US$15.6 million and an accumulated deficit of US$19.2 million. Alzamend was founded in 2016 and brought its IPO in June 2021. Its market cap is US$237.6 million.

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Bottomline

The NASDAQ Biotechnology Index rose 3.93 percent YTD. However, Aeterna Zentaris stock jumped 96.59% YTD, and Alzamend Neuro stock declined 70% since its listing in June this year. Overall, the healthcare sector has grown rapidly this year, boosted by increased vaccine sales, drug development, approvals, and investments. However, investors must exercise due diligence before investing in the stock market.

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