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Axcella Health (NASDAQ:AXLA) stock is falling on Thursday following its announcement of a new Covid-19 treatment patent.
However, it’s not that this is bad news for the clinical-stage biotechnology company. Instead, it’s simply that the announcement was made a couple of days ago. That resulted in shares of AXLA stock undergoing a major rally. Today’s drop is simply the stock coming off the high of that news.
AXLA stock initially jumped a massive 297% when it announced the new Covid-19 treatment patent on Tuesday. Following that, the stock lost 15.2% of those gains on Wednesday. That negative movement continues, with the shares down 21.3% during pre-market trading on Thursday.
Today’s drop comes as more than 2.9 million shares of AXLA stock change hands. For the record, the biotechnology company’s daily average trading volume is closer to 7.9 million shares.
AXLA Covid-19 Treatment
The Covid-19 treatment patent that initially caused all of this stock movement has to do with Long Covid. Specifically, it has to do with the company’s Candidate AXA1125 treatment, which is designed to treat fatigue patients with Long Covid may experience.
Paul Fehlner, J.D., Ph.D., senior vice president and chief legal officer of Axcella Health, said the following about this:
“Today’s issuance expands our global patent portfolio and Axcella’s protection of its lead candidate, AXA1125. These patents and our entire portfolio are fully owned by Axcella.”
Investors looking for more of the most recent stock market news today are going to want to stick around!
We have all of the biggest pre-market stock news that traders need to know about on Thursday! That includes what’s going on with shares of Acer Therapeutics (NASDAQ:ACER) stock, Noco-noco (NASDAQ:NCNC) stock, and iCoreConnect (NASDAQ:ICCT) stock today. All of that info is ready to go at the links below!
More Stock Market News For Thursday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.