Sigilon Therapeutics (NASDAQ:SGTX) Stock Suddenly Slumps: Time To Sell?
Biotech firm Sigilon Therapeutics (NASDAQ:SGTX) saw its stock get into a bit of a downward spiral this past Friday. The Sigilon stock declined by as much as 25% amidst a strong selloff and this week investors are expected to watch the stock closely for signs of a recovery.
However, it is easy to see why the Sigilon stock tanked so hard. Last week, the company had announced that a clinical hold had been placed on its clinical haemophilia medicine. Such an announcement often leads to panic that the testing of the product might not restart any time soon and hence, it was no surprise that the Sigilon stock suffered from a rapid selloff.
The trial for the product in question, named SIG 001, had been launched by the company in September last year. In addition to that, it is necessary to stress that the therapy is quite complicated in nature and consists of engineered human cells meant for tackling haemophilia. However, the clinical hold is certainly major blow for the company since it has derailed one of its major programs. It is going to be interesting to see if the stock continues to fall this week or not.
Market Reaction:
On Friday, SGTX stock plunged 25.32% at $6.90 with more than 1.91 million shares, compared to its average volume of 191k shares. The stock had moved within a range of $6.28 – 7.23 after opening the trade at $6.95. Over the past 52-week, the stock has been trading within a range of $6.28 – 54.32.
