Is NextCure a Buy?
Biotech investors know not to place too much value on early-stage results from a small number of patients, but that doesn't stop Mr. Market from getting carried away from time to time. NextCure (NASDAQ: NXTC) became the latest example of why that's rarely a great idea.
Preliminary results from its lead drug candidate pushed shares to a gain of over 225% on Nov. 5. A week later, the company shared updated preliminary results from the same study that suggested the pipeline asset held promise, but the update was less rosy. Shares fell more than 50% in response.
The drama wasn't all for nothing. The small-cap stock is still up 33% in the last month, and NextCure wisely took advantage of the situation by raising $150 million in gross proceeds through a public stock offering. That said, investors might be wondering what to think of the biopharma now that the dust is settling. Here's a deeper dive into the newly public company.
Source Fool.com
