Celsion Corporation (NASDAQ:CLSN) shareholders are stoked in anticipation for tomorrow’s R&D Day conference set in New York City, with shares experiencing a just under 18% acceleration today.
This bullish frenzy follows quite a rollercoaster for the month of October, all starting just eight days ago, when the drug maker set loose successful data from its Phase 1b dose-escalating DNA immunotherapy GEN-1 study evaluating patients with advanced Staged III and Stage IV ovarian cancer. Celsion’s Gen-1 candidate coupled with standard chemotherapy yielded strong clinical data that showed no sign of dose limiting toxicities- and simultaneously showed off enticing dose dependent efficacy signals. This all bodes positively for successful surgical outcomes, and Wall Street took the home run in a tear, with the stock shooting up 301% on October 3rd on back of the results.
However, the following day, after having magnetized such horsepower in 24 hours, Celsion stock dropped at the drop of a hat to the tune of 49%. What happened that shot the bullish parade short on October 4th? Though Celsion generated a nice $15.6 million boost on back of amended outstanding warrants, allowing holders of Series AAA and Series BBB warrants to immediately exercise all existing warrants, with the amount just under 5 million shares in common stock priced at a respective $2.07 per share and $4.75 per share, the discount to CLSN share prices was at a sharp discount. While this strategy can be strategic for a company like Celsion looking to fund future clinical successes, shareholders do not typically rally behind share dilution.
In fact, Maxim analyst Jason McCarthy found the drug maker’s decision to re-negotiate outstanding warrants to be a savvy play on CLSN’s management’s part. As a result, the analyst left the sidelines and upgraded from a Hold to a Buy rating on CLSN stock while setting a $7 price target, which represents a close to 29% increase from current levels. (To watch McCarthy’s track record, click here)
Yet, the drug maker quickly regained ecstatic investor sentiment, and since the data read-out that first ricocheted volatile energy action a little over a week ago, the stock overall has amassed a massive 258% in value. The bulls for now are sticking with this dynamic biotech player.
CLSN has a 1-year high of $16.38 and a 1-year low of $1.24. The stock’s 50-day moving average is $1.90 and its 200-day moving average is $1.45.