Theratechnologies Inc (OTCMKTS: THERF) finds itself in a tight spot engulfed in a tight trading range. The stock has struggled to power through the $5.30 to $6.60 trading range, after coming under immense short selling pressure in 2018.
With the stock currently languishing near one-year lows, the need for new catalysts to revitalize upside action is necessary.
THERF Catalysts And Share Price Analysis
A string of positive news in the recent past looks set to avert further plunge, after a long period of consolidation. Top on the list is the confirmation that the company’s candidate drug Tesamorelin significantly reduced liver fat in HIV patients as part of ongoing clinical trials.
In addition, the company has received a boost on the European Medicine Agency approving the manufacturing of Trogarzo for the market.
In February, the company moved to enhance organic growth prospects with the acquisition of oncology company Katana Biopharma. The string of positive developments attests to a company firing on all angles when it comes to operational efficiency and growth.
While the stock is still subdued in a tight trading range, the upside action has been gaining pace in the recent past. A rally followed by a close above the $7 a share level is what is needed to avert further slides.
Above the $7 technical level, Theratechnologies should be on its way to the $9 a share mark seen as the next resistance level. Conversely, below the $7a share mark, the stock remains susceptible to further drops especially on the breach of the $5 critical support level.
As it stands, Theratechnologies remains well positioned to surge as improving underlying fundamentals continue to fuel the upward momentum.
What Does Theratechnologies Do?
Theratechnologies is a specialty pharmaceutical company engaged in the development of treatments for unmet medical needs. The company is currently working on solutions for promoting healthy living for people infected with HIV. Its lead product is EGRIFTA, designed to reduce excess abdominal fat in HIV patients.
Product Pipeline Boost
After a long period of consolidation in a tight trading range, Theratechnologies could as well breakout as investors react to a string of positive developments. Clinical trials confirming that Tesamorelin has the potential to reduce liver fat in HIV patients, with non-alcoholic fatty liver disease, is a significant achievement.
“While Tesamorelin is not indicated for the treatment of NAFLD or NASH, the robust results obtained in this NIH-funded study clearly indicate that Tesamorelin has now become a prime candidate for a potential indication in the treatment of NAFLD-NASH with further studies,” said Dr. Christian Marsolais, Senior Vice President and Chief Medical Officer, Theratechnologies Inc.
In addition to Tesamorelin achievement, Theratechnologies has also achieved a significant milestone on the commercialization of Trogarzo. The European Medicines Agency has given permission to proceed to manufacture Trogarzo for sale in the European market.
According to the Chief Executive Officer Luc Tanguay, this is a significant milestone ahead of a potential launch in the European Union.
“More than ever, we are actively preparing for an approval in this territory to ensure that key markets will be receptive to this unique breakthrough treatment for patients with multidrug-resistant, ”Tanguay in a statement.
In addition to the milestones achieved in the strengthening of the current product pipeline, Theratechnologies also remains focused on pursuing organic growth. In February, the company completed the acquisition of Katana Biopharma as part of an effort of strengthening its oncology technology platform.
With the acquisition, the company gains access to a proprietary technology platform that uses peptides as a vehicle for delivering toxic agents to sorting receptors overexpressed on cancer cells.
Theratechnologies has taken a significant hit over the past year. A long period of consolidation at one-year lows has also gone a long way in raising serious questions about the company’s long-term prospects.
Fast forward, the specialty pharmaceutical has shown it has what it takes to succeed in the sector. Successful clinical trials attest to a company destined for greatness supported by a robust product pipeline. The company has also set sights on the European market as it seeks to strengthen its revenue streams.
Theratechnologies remains well positioned to bounce back from current lows, especially on stabilizing above the $7 a share mark.
We will be updating our subscribers as soon as we know more. For the latest updates on THERF, sign up below!
Disclosure: We have no position in THERF and have not been compensated for this article.