MMR

2 Penny Stocks Rising on Collaboration Announcements

ATHX shares have had a big year

Jun 7, 2018 at 9:50 AM
facebook X logo linkedin


Small-cap stocks have been generating a lot of buzz recently, and just yesterday we identified three surging penny stocks. We'll keep that trend going today and look into the news surrounding healthcare names Athersys, Inc. (NASDAQ:ATHX) and Ophthotech Corp (NASDAQ:OPHT). Shares of both ATHX and OPHT are making big moves today, after the companies revealed new collaborations.

Athersys, Healios Make Another Agreement

Stem cell expert Athersys is trading up 6.1% at $2.96, already tapping a three-year high of $3.08, thanks to news the company is expanding its collaboration with Japan's Healios. Under the agreement, Healios gets the rights to Athersys' MultiStem therapy for $20 million in fees. This comes after Healios invested roughly $21 million in ATHX back in March.

Today's rally is nothing new for the shares as they've been climbing fast since an early March bottom of $1.29. This news could cause some ATHX short sellers to begin to cover. As it stands now, 8.6% of the float is controlled by short sellers, equating to 18 days' worth of buying power, based on average daily volumes.

Gene Therapy Collaboration Lifts OPHT Stock

Meanwhile, Ophthotech -- which focuses on diseases related to the eye -- is up 31.2% at $3.67, a new annual high, following its announcement of a licensing deal with the University of Florida and University of Pennsylvania to develop gene therapies. This is a much-needed move for OPHT, which had been stuck in a series of lower highs since peaking at $3.60 back in November. On a longer-term basis, the picture is even more troubling, as the shares suffered a monumental bear gap back in late 2016, falling from around $40 to around $5. Not a single analyst currently has a "buy" rating on the security, so if nothing else a sustained push higher could possibly draw some bullish attention from the Street.

 

 

Follow us on X, Follow us on Twitter

 

Nvidia and its powerful chips are the face of artificial intelligence.

But while everyone’s patting Nvidia on the back for record earnings…

It’s quietly moved on to the next phase of AI it plans to conquer…

Nvidia recently unveiled essential blueprints for this crucial $1 trillion pivot.

Click here now and find out about the three companies Nvidia absolutely needs to succeed in this vital new AI frontier.
 (ad)