Eloxx Pharmaceuticals Inc (NASDAQ:ELOX) Stock Takes a Hit: Here Is Why
Despite the announcement of positive top line results in relation to one of its products, the Eloxx Pharmaceuticals Inc (NASDAQ:ELOX) stock suffered from a strong selloff and ended the day with a decline of as much as 26%.
Market Stats
On Wednesday, ELOX stock slumped 26.44% at $0.87 with more than 7.47 million, compared to its average volume of 502k shares. The stock has moved within a range of $0.8500 – 1.0850 after opening trading at $1.06.
Reports Positive Topline Results from Monotherapy Arms
Although the stock declined sharply, it might be a good idea for investors to figure out if the fall could in fact be an opportunity to get into the stock. The top line results that were announced by the company were in relation to the Phase 2 clinical trial of its product ELX 02. The product is meant for the treatment of patients suffering from Class 1 cystic fibrosis.
The company announced that the product was not only tolerated well by patients but it also helped in bring about statistically significant reduction in sweat chloride in the patients. The reduction stood at 5.4mmol/L.
It goes without saying that it was a positive development for the company but the news did not lead to any real excitement from investors and in fact, the stock suffered from a selloff. It now remains to be seen if the Eloxx Pharmaceuticals stock can manage to make a comeback over the course of the coming days.
Key Quote
“We are highly encouraged with the topline results from the monotherapy arms of our Phase 2 trial, and believe that ELX-02, if approved, has potential to transform the lives of Class 1 CF patients with nonsense mutations, who do not have any available therapies,” said Sumit Aggarwal, President and Chief Executive Officer of Eloxx.
Traders Corner
ELOX stock is trading below the 20-Day and 50-Day Moving averages of $1.32 and $1.52 respectively. Moreover, the stock is trading below the 200-Day moving average of $2.13. The stock is down 43% in the past month.
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