ACXP irrational dump
On November 20, 2024, Acurx pharmaceuticals announced that it approved the conversion of a portion of its cash reserves into Bitcoin, up to a maximum of $1 million.
Immediately, the stock plunged, reflecting shareholder disapproval of this decision. Since then, Acurx has lost around 58% of its value.
To me, this reaction is disproportionate for several reasons:
- In its field of expertise, the search for new antibiotics, Acurx is well positioned. Its flagship product, ibezapolstat, is set to enter phase 3 next year, following encouraging phase 2 studies. These demonstrated, in 32 patients, non-inferiority of the compound compared with vancomycin in Clostridium difficile infection.
- The company has not diluted its shareholders since it decided to invest in Bitcoin.
- Antibiotic resistance is a major issue worldwide. Conclusive Phase 3 results would make ibezapolstat a must-have product worldwide.
- The company is currently valued at just $15 million.
- The Bitcoin price is quietly holding above 90k, with the potential to rise with the arrival of Trump in the White House.
Technically, ACXP seems to have found support at $0.72, with a double bottom that will be confirmed after a clear break of the $1 mark.
Next results will be announced on March 13, 2025. Will the market realize that the stock is mispriced? Only time will tell.
TL;DR: ACXP falls on non-news. Investors will probably realize the mistake when the next results are announced on March 13, 2025. I'm buying here.
Disclaimer: Biotech investments are always extremely risky. This is not investment advice. Always do your own research. Manage your risk accordingly.
Immediately, the stock plunged, reflecting shareholder disapproval of this decision. Since then, Acurx has lost around 58% of its value.
To me, this reaction is disproportionate for several reasons:
- In its field of expertise, the search for new antibiotics, Acurx is well positioned. Its flagship product, ibezapolstat, is set to enter phase 3 next year, following encouraging phase 2 studies. These demonstrated, in 32 patients, non-inferiority of the compound compared with vancomycin in Clostridium difficile infection.
- The company has not diluted its shareholders since it decided to invest in Bitcoin.
- Antibiotic resistance is a major issue worldwide. Conclusive Phase 3 results would make ibezapolstat a must-have product worldwide.
- The company is currently valued at just $15 million.
- The Bitcoin price is quietly holding above 90k, with the potential to rise with the arrival of Trump in the White House.
Technically, ACXP seems to have found support at $0.72, with a double bottom that will be confirmed after a clear break of the $1 mark.
Next results will be announced on March 13, 2025. Will the market realize that the stock is mispriced? Only time will tell.
TL;DR: ACXP falls on non-news. Investors will probably realize the mistake when the next results are announced on March 13, 2025. I'm buying here.
Disclaimer: Biotech investments are always extremely risky. This is not investment advice. Always do your own research. Manage your risk accordingly.
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