Some pharmaceutical companies have interesting stocks. Among them, PaxMedica, Inc. (Nasdaq: PXMD) has some promise because it is seeking treatments to moderate the symptoms of neurodivergent disabilities, which currently have no FDA-approved treatments. Its drugs are currently only being tested on animal models so it is still a long distance from the market. That being said, PXMD intends to submit an IND to the FDA in 2024, which if approved may end up being a major catalyst for PXMD stock.
PXMD Fundamentals
As of this writing, PXMD is working on treatments for Autism Spectrum Disorder (ASD), Fragile X Associated Tremor/Ataxia (FXATS), and African Sleeping Sickness (HAT). PAX 101 is an intravenous treatment for ADS, FXATS, as well as HAT. Currently, it is in phase 2B in its FDA approval process for ADS. The rest of PXMD’s medications are in preclinical trials, with the exception of PAX 101 for HAT, which has not entered preclinical trials yet.
PXMD stock’s next major research-related catalysts are PAX 101 phase 2B results and PAX 101’s IND. PAX 101 is currently in its phase 2B trial for ASD, additionally, PAX 101 is in phase 3 trials for HAT, the results of which are set to be released in the second half of 2023. If the phase 3 results are favorable it might positively catalyze the stock. PXMD plans to submit its PAX 101 IND in 2024, which assesses if treatments are safe for human trials. The IND process is not long and arduous; it usually takes 30 days for the FDA to reach a consensus concerning an IND which is quick. If PAX 101 passes its IND process then PXMD will be able to conduct human trials.
IND, and medical jargon aside, PXMD stock has another potential catalyst in store. The stock has a history of short squeezes due to its unusual support. Not all supports are created equal. Some are brittle, while others endure constant retests, rarely breaking under pressure. Others like PXMD Stock’s fabled $1.36 support are nearly impregnable and cause multiple stock runs that exceed 100%. Currently, the stock is loaded with shorts, and nearing that aforementioned support. PXMD’s short interest is 32.3%, 43.3% of its float is on loan and its utilization is at 100%. PXMD traders will likely buy in mass when the stock reaches the trendline causing a short squeeze, which will cause a run.
PXMD Financials
According to its 2022 annual report, PXMD increased its assets significantly from $648 thousand in 2021 to $2.2 million in 2022. Its liabilities also decreased substantially from $10.7 million to $2 million. Its operating expenses increased from $7 million to $10 million due to an increase in trials. As a result, PXMD’s net loss increased from $6 million to $8 million.
Technical Analysis
PXMD is in a bearish trend, in a downward channel below the 200 MA. It’s currently above the 50, and 21 MA’s as well. The RSI is neutral at 56, and the MACD is reaching a bearish crossover. The stock is currently trading near its trend line support.
PXMD is in a bearish trend, in a downward channel below the 200 MA. It’s currently above the 50, and 21 MA’s as well. The RSI is neutral at 56, and the MACD is reaching a bearish crossover. The stock is currently trading near its trend line support.
Given the stock’s history with short squeezes, it’s safe to assume that a short squeeze may occur at its $1.36 support. A possible play could be to go long and enter at the trend line support retest, and TP at the 21 MA, 200 MA, and its $1.88 resistance. A stop loss should be set at around $1.31 which would indicate a break in the trend line support.
PXMD Forecast
PXMD could experience a run due to its phase 3 HAT trial, and its PAX 101 IND. Given that information, as well as the strength of its support it is safe to assume that PXMD stock has a devoted following. Currently, the stock is trading near its trend line support, with a 32% short interest, which is why, given the history of PXMD stock, it is likely going to experience a short squeeze when it retests its support. Its $1.36 support caused the stock to run more than 100% three times in the past. This time may not be any different.
PXMD Fundamentals
As of this writing, PXMD is working on treatments for Autism Spectrum Disorder (ASD), Fragile X Associated Tremor/Ataxia (FXATS), and African Sleeping Sickness (HAT). PAX 101 is an intravenous treatment for ADS, FXATS, as well as HAT. Currently, it is in phase 2B in its FDA approval process for ADS. The rest of PXMD’s medications are in preclinical trials, with the exception of PAX 101 for HAT, which has not entered preclinical trials yet.
PXMD stock’s next major research-related catalysts are PAX 101 phase 2B results and PAX 101’s IND. PAX 101 is currently in its phase 2B trial for ASD, additionally, PAX 101 is in phase 3 trials for HAT, the results of which are set to be released in the second half of 2023. If the phase 3 results are favorable it might positively catalyze the stock. PXMD plans to submit its PAX 101 IND in 2024, which assesses if treatments are safe for human trials. The IND process is not long and arduous; it usually takes 30 days for the FDA to reach a consensus concerning an IND which is quick. If PAX 101 passes its IND process then PXMD will be able to conduct human trials.
IND, and medical jargon aside, PXMD stock has another potential catalyst in store. The stock has a history of short squeezes due to its unusual support. Not all supports are created equal. Some are brittle, while others endure constant retests, rarely breaking under pressure. Others like PXMD Stock’s fabled $1.36 support are nearly impregnable and cause multiple stock runs that exceed 100%. Currently, the stock is loaded with shorts, and nearing that aforementioned support. PXMD’s short interest is 32.3%, 43.3% of its float is on loan and its utilization is at 100%. PXMD traders will likely buy in mass when the stock reaches the trendline causing a short squeeze, which will cause a run.
PXMD Financials
According to its 2022 annual report, PXMD increased its assets significantly from $648 thousand in 2021 to $2.2 million in 2022. Its liabilities also decreased substantially from $10.7 million to $2 million. Its operating expenses increased from $7 million to $10 million due to an increase in trials. As a result, PXMD’s net loss increased from $6 million to $8 million.
Technical Analysis
PXMD is in a bearish trend, in a downward channel below the 200 MA. It’s currently above the 50, and 21 MA’s as well. The RSI is neutral at 56, and the MACD is reaching a bearish crossover. The stock is currently trading near its trend line support.
PXMD is in a bearish trend, in a downward channel below the 200 MA. It’s currently above the 50, and 21 MA’s as well. The RSI is neutral at 56, and the MACD is reaching a bearish crossover. The stock is currently trading near its trend line support.
Given the stock’s history with short squeezes, it’s safe to assume that a short squeeze may occur at its $1.36 support. A possible play could be to go long and enter at the trend line support retest, and TP at the 21 MA, 200 MA, and its $1.88 resistance. A stop loss should be set at around $1.31 which would indicate a break in the trend line support.
PXMD Forecast
PXMD could experience a run due to its phase 3 HAT trial, and its PAX 101 IND. Given that information, as well as the strength of its support it is safe to assume that PXMD stock has a devoted following. Currently, the stock is trading near its trend line support, with a 32% short interest, which is why, given the history of PXMD stock, it is likely going to experience a short squeeze when it retests its support. Its $1.36 support caused the stock to run more than 100% three times in the past. This time may not be any different.