60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP) experienced notable activity on Thursday, with the stock rising by 5.2% during regular trading hours. However, the momentum did not stop there. In the premarket session on Friday, SXTP skyrocketed by an extraordinary 77%. This dramatic increase has caught many off guard, as no immediate news or announcements seem to justify such a surge. This has led to speculation that a potential profit-taking dip might be on the horizon, though current investors are enjoying the gains while they last.
Recent 60 Degrees Developments
The most relevant update from the company came approximately ten days ago when it received IRB approval for a clinical study of Tafenoquine. This study is focused on treating Babesiosis in immunocompromised patients who have not responded to prior treatments. This is part of a broader effort by 60 Degrees Pharmaceuticals to advance their research in treating infectious diseases.
Founded in 2010 and headquartered in Washington D.C., 60 Degrees Pharmaceuticals specializes in developing new medicines for infectious diseases. The company’s flagship product, ARAKODA® (tafenoquine), was approved by the FDA for malaria prevention in 2018. The company also collaborates with research organizations in the U.S., Australia, and Singapore and has received support from entities like the U.S. Department of Defense and private investors including Knight Therapeutics Inc.
Study Expansion
Earlier this month, 60 Degrees Pharmaceuticals announced an ethics approval for an expanded access study involving ARAKODA® in combination with standard treatments for babesiosis. This study aims to confirm findings from an earlier case series by Yale School of Public Health, which reported an 80% cure rate in immunosuppressed patients. The results, published in Clinical Infectious Diseases, are promising and could bolster confidence in the company’s research.
Conclusion
The sharp rise in 60 Degrees Pharmaceuticals’ stock highlights the volatile nature of biotech stocks, driven by both tangible developments and market speculation. As the company continues to advance its clinical studies, investors will be watching closely for further updates that could influence the stock’s performance. In the meantime, the dramatic price movements suggest that caution and careful analysis will be essential for those looking to trade SXTP.
