Shares of Generex Biotechnology Corporation (OTCMKTS:GNBT) are flirting with record highs on turning bullish after a blockbuster run. The serving of groundbreaking catalysts in recent weeks has helped strengthen investor confidence in the stock fuelling the surge.
Generex Biotechnology Price Analysis
The stock has rallied up by more than 600% over the past two months. The rally has come on the company announcing the expansion of its medical device portfolio with key acquisitions. The company is fresh from announcing the acquisition of Olaregen Therapeutix, Hema Diagnostic Systems, and Regentys Corporation.
The company announcing debt restructuring as well as a new warrant deal also continues to excite the market, fuelling the upward momentum. In addition, the company has affirmed its pursuit of opportunities in the cannabis sector with the unveiling of a NuGenerex HydroHealth CBD High Alkaline Health Water.
In response to the positive development, investors have continued to push the stock up the charts. The stock is currently trading in a steep uptrend. Pullbacks have since emerged to buy opportunities from where new investors are coming in and pushing the stock up.
After the recent spike higher, the stock faces immediate support at the $1 a share level on any pullbacks from current record highs. A sell-off followed by a close below the $1 a share level could leave the stock vulnerable to further drops to the $0.40 a critical support level.
A breach of the $0.40 level could result in the stock turning bearish. However, given the strength of the upward momentum, Generex Biotechnology, remains well positioned to continue climbing high especially after pullbacks.
What Does Generex Biotechnology Do?
Generex Biotechnology is a diversified healthcare Holdings company that develops, manufactures and distributes in-vitro medical diagnostics for infectious disease. The company also develops Rapid Diagnostics Tests for HIV, tuberculosis, hepatitis, Malaria among others. The company has also expanded its wings into the cannabis sector.
Generex Biotechnology is climbing high in the market at the backdrop of a robust acquisition drive that has caught investors’ attention. In a span of one month, the company has completed three key acquisitions set to strengthen its core business.
The company is fresh from expanding its medical device portfolio with the acquisition of a 51% stake in Olaregen Therapeutix. The stake acquisition provides the company with access to a key regenerative medicine company.
Olaregen is on course to unveil its FDA approved medical device, Excellagen, for use in the treatment of various wound types. The device activates platelets thereby triggering the release of essential growth factors. It also provides a scaffold for cellular infiltration.
“This acquisition perfectly illustrates our corporate strategy as we build a new pharmaceutical company model. We are launching Excellagen® through our direct to physician market channels established with our recently announced acquisitions in pharmacy and management services,” stated Joe Moscato, CEO of Generex.
Generex Biotechnology has also expanded its medical device & wound care portfolio with the acquisition of Regentys Corporation. The company develops treatments that target gastrointestinal disorders. Regentys Extra-Cellular Matrix Hydrogel is the company’s lead product, which is a non-surgical treatment option for Ulcerative Colitis.
The FDA has already provided the clearest indication that the treatment option can gain regulatory approval through the FDA Office of Device Evaluation. According to the Generex Chief Medical Office, the acquisition is a high-value clinical stage asset.
To cap up the acquisition drive, Generex has completed the 100% acquisition of Hema Diagnostics System
“I am very gratified that a respected investor like Steve Berkman […]he has not only sold the remaining 49% of his company to Generex for one dollar, but he has forgiven over $13.5 million dollars in debt on the books of Generex that was originally a note from HDS,” said Joseph Moscato, Generex President & Chief Executive Officer.
In addition to the acquisition drive, Generex has expanded its operations into the cannabis sector. The company has inked a strategic collaboration with Puration Inc. (OTCMKTS: PURA) for the development of NuGenerex CBD HydroHealth High Alkaline water. The health science company has also reiterated plans to build a line of CBD infused drinks targeting the sports nutrition market.
Generex Biotechnology meteoric rise to the top has not come on speculation but on investors taking note of the aggressive acquisition drive as well as strengthening fundamentals. The company diversifying its operation with expansion into the cannabis space is another development that continues to fuel the upward momentum.
If you are looking for a fast growing stock in the health sciences space, then Generex Biotechnology is an ideal pick, given the plenty of opportunities on the horizon. After a 600% spike, it might be wise to wait for a pullback before entering a long position in the stock.
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Disclosure: We have no position in GNBT and have not been compensated for this article.