The long-beaten down transdermal patch developer, Agile Therapeutics Inc. (AGRX) made its comeback on Tuesday. Having bounced back on April 12, the stock rallied in both the regular and after-hours sessions with gains of 47.18% and 27.74% respectively. Thus, after spiking up to $0.1878 in regular trading, AGRX reached $0.2399 in the after hours.
There is no official news or SEC filing from the company behind the comeback.
AGRX Stock Analysis
AGRX stock has been plunging down since the company posted missed earnings on March 30, 2022. While the stock was already in a downtrend, the latest news of its sale of tax benefits on April 11 did more harm than good to the stock. Thus, continuing the downtrend, the stock plunged down to a near low on April 11 and closed the session slightly above it. Having a good deal of rebound energy stored over time, the stock finally made a comeback on April 12. Given that there is no other news from the company, the rebound seems to be caused by external factors.
Market Situation
Among other external factors like social media discussions and stock sentiment etc., the market situation could also be a cause of the rebound. With the prevailing uncertainty in the market due to multiple factors, investors are trying to make safe bets. Currently, healthcare stocks are one of the safe havens for investors as they are less likely to be impacted by crises and conflicts among other instabilities. Therefore, investors are gladly buying the current dip in AGRX stock as the wider market remains under the cloud of high volatility.
Sale of Tax Benefit
On Tuesday, the company announced receiving net proceeds of $4.7 million from the sale of tax benefits through the New Jersey economic development program. The company participated in the Net Operating Loss (NOL) program of the New Jersey Economic Development Authority (NJEDA) under the New Jersey Economic Recovery Act of 2020. The program allows NJ-based tech and bio-tech companies to cash their NOLs through sales to unrelated profitable corporations. Thus, tax losses and credits are turned into cash proceeds for funding growth and operations.
AGRX’s 2022 Plans
By 2022 the company has focused its business plan on boosting demand for its transdermal contraceptive Twirla. As per the plans, AGRX has partnered with Afaxys for a co-promotion program and expects to launch a DTC commercial on connected TV this month.
Additionally, the company will also be holding a Special Meeting of Stockholders this month for approval of a reverse stock split in order to regain compliance with Nasdaq.
