Penny Stock at Bottom of Nasdaq After Drug Data

CLSD's eye therapy drug failed a late-stage study

Managing Editor
Nov 5, 2018 at 9:55 AM
facebook twitter linkedin

The shares of Clearside Biomedical Inc (NASDAQ:CLSD) are down a whopping 52.7% to trade at $2.63 this morning, after Xipere, the company's eye therapy drug, failed a late-stage study. The drugmaker will discontinue the development of the combination therapy for retinal vein blockage, but will still file a marketing application for Xipere at year's end for treating uveitic macular edema. 

Out of the gate, CLSD fell to $2.49, a new record low. The shares have been carving out a channel of lower lows since mid-July, with their 30-day moving average containing any breakouts. Even prior to today's drop, the equity had shed 20% this year, and is on its way to a fifth straight losing month. 

Analysts have been undeterred by the drug stock's recent struggles. Currently, all five of the brokerages covering CLSD rate it a "strong buy," and its consensus 12-month price target sits all the way up at $23. For reference, the security hasn't traded near that level in almost two years. 

Short sellers have been piling on, though. Short interest increased by nearly 20% in the last two reporting periods to 1.05 million shares, the most since August 15. However, this only represents 3.5% of CLSD's total available float, indicating there is still ample room aboard the bearish bandwagon. Of course, the shares are on the short-sale restricted list today.


If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!



Special Offers from Schaeffer's Trading Partners