Why Shares of Shuttle Pharmaceuticals Jumped 160.4% This Week
Shares of Shuttle Pharmaceuticals Holdings (NASDAQ: SHPH) climbed 160.4% this week, according to data from S&P Global Intelligence. The stock closed at $14.90 last Friday and then opened this Tuesday at $12.16. It hit its high at $43.80 on Thursday and closed on Friday at $38.80. The stock began trading on Aug. 31 after its initial public offering (IPO). The stock has been on a volatile ride of late. After its IPO, the stock jumped to $84.70, but dropped like a rock, falling to a low of $11.77 last Friday before bouncing back. This week, it rallied on Thursday and Friday.
Shuttle is a clinical-stage pharmaceutical company that specializes in drugs to enhance the effectiveness of radiation therapy in cancer patients. Its pipeline includes Ropidoxuridine, to treat patients with brain tumors and soft-tissue cancers, and Doranidazole, an injectable radiation sensitizer to treat pancreatic, lung, and liver cancers. Both drugs are in early-stage trials.
The stock's wild swings have a lot to do with retail investor interest. It's important to note it is hard to gauge the company's worth as it hasn't released a public quarterly report and doesn't yet have any therapies approved by the Food and Drug Administration (FDA). However, the company's pipeline drugs have the potential to serve a large target audience. According to the American Cancer Society, a little over 1.9 million new cancer cases are expected to be diagnosed in the U.S. in 2022, and more than 50% of those patients will receive radiation at some point. The company's pipeline includes two therapies that could treat a wide range of cancers. There isn't much competition in the radiation sensitizer indication, with only one like therapy, Eribtux (Cetuximab), sold in the U.S. by Eli Lilly and by Merck outside the U.S., that has been approved by the FDA.
Source Fool.com
