Lixte Biotechnology (LIXT) stock skyrocketed 92% today - here’s why

Highlights

  • Lixte Biotechnology Holdings, Inc. (NASDAQ: LIXT) stock jumped 92.53% gain at 9:57 am ET.
  • The company’s lead clinical compound LB-100 showed increased responsiveness to various cancers in preclinical studies.
  • The stock was down 21.72% in the past 12 months.

Shares of Lixte Biotechnology Holdings, Inc. (NASDAQ: LIXT) jumped more than 92% in the pre-market on Wednesday after announcing the study data.

The stock traded at US$2.5992 at 9:57 am ET on Wednesday. The trading volume also jumped to 77,746,375, way more than its 90-day average of 59,944.

The stock rallied after the company said its clinical compound LB-100 showed increased responsiveness against diverse cancers in preclinical studies.

The LB-100 compound is used for treating various tumors, including breast and pancreatic cancers. It also enhances the responsiveness of the immune checkpoint blockade in mouse models of colorectal, the company said in a release.

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The research showed the cancers cells weakened after the immunotherapy that makes molecular changes induced by LB-100.

Lixte’s market capitalization is US$34.9 million. The stock traded in the range of US$7.19 to US$1.11 in the last 52 weeks. It closed at US$1.35 on Jan 4, 2021.

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Lixte Biotechnology (LIXT) stock skyrocketed 92% today - here’s why

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Financials

On Oct 8, 2021, the company entered into an agreement with the Netherlands Cancer Institute, Amsterdam, and Oncode Institute, Utrecht, to explore drug combinations for LB-100.

The New York-based company launched its IPO in September 2007. 

It develops treatments for various cancers. The company uses biomarker technology to identify the enzyme targets linked to serious diseases.

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The company reported available cash of US$5,960,594 as of Sept 30, 2021. It did not have any revenue-generating operations till the end of the September quarter. It had no positive cash flow from operations and was using the equity capital to fund the operating requirements.

In the first nine months of 2021, the company earned no revenue. Its net loss was US$4.7 million or US$(0.35) per share diluted compared to a net loss of US$2.36 million or US$(0.21) per share diluted in the same period of 2020.

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Bottomline

A drug candidate goes through various clinical trials phases receiving final regulatory approval. Hence, investors should pay attention to the product pipeline of healthcare companies to check whether they are generating any revenue before investing in such stocks. 

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