Arch Therapeutics Inc (OTCMKTS: ARTH) is struggling for direction after a long period of consolidation. The stock has seen its price action activity come under pressure on the lack of press updates needed to trigger volatility. New catalysts may have to come into play to avert further slides as the stock remains engulfed in a bear trend.
Arch Therapeutics Prices Analysis
After plunging from highs of $0.58, at the start of the year, the stock has resorted to trading in a tight trading range of between $0.35 and $0.41 in recent months. A lack of updates has made it difficult for investors to speculate on the stock’s long-term activity thus the subdued market activity.
A breach of the $0.41 resistance level should affirm a breakout from current lows, setting the stage for bulls to come back in and continue pushing the stock higher.
Conversely, a violation of the $0.35 support level could give short sellers a reason to continue pushing the stock lower in continuation of the emerging downtrend.
Arch Therapeutics has what it takes to offer substantial gains as a long-term play. However, that may only come fruition on the management reiterating growth metrics and long-term prospects through substantial updates.
About Arch Therapeutics
Arch Therapeutics is a biotechnology company working on solutions aimed at stopping unnecessary bleeding (Hemostasis) and control leaking of wounds as well as manage wounds after surgery.
The company develops its solutions based on an innovative self-assembling barrier technology platform. Its development stage candidates include AC5 Topical Gel and AC5 Surgical Hemostat.
What next For Arch therapeutics
Arch Therapeutics finds itself in a precarious position given the lack of catalysts and updates needed to reinvigorate investor confidence to fuel upside action.
The last substantial piece of information about the company’s underlying developments came late last year after the company received clearance from the US FDA for AC5 Topical Gel.
With the 510(k) clearance, the company received the green light to proceed with marketing operations of its topical dressing gel designed for partial and full thickness wounds.
“We believe that AC5 can add an important option to healthcare providers’ tool kits for the treatment of wounds. We continue to develop our commercialization plans and look forward to expanding the AC5 product family both in the US and abroad, where we have filed our first application for a CE mark in Europe,” explained CEO, Terrence Norchi.
In Europe, the company is seeking the CE mark that will allow it to market its other topical gel Topical Hemostat AC5. Topical Hemostat AC5 is for use in external wounds, as it is capable of controlling bleeding by mechanically sealing areas of leakage and healing wounds.
The company has already made a submission to the European Medical Devices Directive awaiting approval. Approval in Europe should allow the company to embark on an aggressive marketing campaign.
In December, the company’s intellectual property portfolio did receive a boost on the Japanese Intellectual Property Court maintaining its ‘646 patent’.
“These next weeks, months, and quarters are important to Arch as we continue to develop our products for commercialization in the US and Europe,” added Mr. Norchi.
ARCH Therapeutics boasts of a robust pipeline of products crucial for the healing of wounds. Regulatory approval in Europe and the US are important milestones that pave the way for the company to embark on aggressive marketing in pursuit of sales.
Even as the company continues to pursue marketing approval, it is also working round the clock to come up with new products as it seeks to strengthen its product line.
While the stock has underperformed in recent months, the company remains well focused on its long-term prospects, given the ongoing research and development programs.
Considering undergoing developments, it goes without saying that the current share price does not reflect the company’s tremendous opportunity.
However, the stock could remain under pressure until management comes out and provides crucial updates and serve groundbreaking catalysts to strengthen investor’s confidence in the stock.
In the meantime, it might be wise to wait for further confirmation to see whether the stock will bottom out from the current tight trading range.
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Disclosure: We have no position in ARTH and have not been compensated for this article.