Prima Biomed Ltd. (PBMD) Stock Is Falling, Why We’re Not Concerned
Prima Biomed Ltd. (NASDAQ:PBMD) has had an amazing day in the market yesterday. As a matter of fact, their stock nearly quadrupled in value! However, it doesn’t seem as though we’re seeing the same thing today. The stock is down in a big way. So today, we’ll talk about why PBMD climbed yesterday, what we’re seeing in the market today and why, and of course, what we can expected to see from Prima Biomed moving forward. So, let’s get right to it…
Why PBMD Nearly Quadrupled In Value Yesterday
The reason for the climb is simple; and it’s something we see quite often in the biotech space. Prima Biomed released data from it’s most recent clinical trial; which was the Phase II trial of CAN-003 as a treatment for ovarian cancer. The data released was overwhelmingly positive; showing clinically meaningful improvement in overall survival over standard care in second remission patients. All in all, the data shows that PBMD’s prime candidate is doing exactly what it was expected to do.
What We’re Seeing In The Market Today
Today is a much different story for PBMD. Unfortunately, the stock is falling; and falling hard. Currently (11:10), PBMD is trading at $3.75 per share after a loss of 36.5% so far today; but I’m not too concerned. As I’ve mentioned time and time again in these situations, it’s important to remember that price movement in the market is a series of overreactions. Don’t get me wrong, there was very good reason for the climb yesterday; but as we see in most cases, investors simply pushed the value of the stock much higher than it should have gone in a single day. As a result, we’re seeing a bit of a correction today. Nonetheless, this is very natural movement and I’m not personally concerned about today’s declines.
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see great things out of PBMD both in the short term and long term outlooks. Here’s how I see it…
- Short Term – In the short term, I think the downtrends we’re seeing today will prove to be nothing more than standard market movement in an overwhelmingly bullish stock. We’re seeing the market rest right now; but it’s highly likely that this thing will pop back up in the coming days.
- Long Term – In the long run, I’m expecting to see more of the same. The reality is that we’re talking about a company whose treatment has now been proven to improve survival rates in patients with ovarian cancer. This is an astonishing breakthrough and will likely not only be profitable, but lead to more breakthroughs from PBMD in the future. So, all in all, I’m expecting to see long term gains from Prima Biomed.