PaxMedica, Inc. (NASDAQ: PXMD) experienced notable price swings on Thursday, initially witnessing a 4.2% decline during regular trading hours, leading to a price of $0.41 per share.
However, after the trading day concluded, PXMD surged by a remarkable 116% in after-hours trading, reaching nearly $0.90 per share. This sudden surge was accompanied by an unprecedented increase in trading volume, with 8.4 million shares exchanged compared to the usual average of 240,000 shares, indicating significant investor interest.
The surge in PXMD’s stock price coincides with the company’s announcement of a significant clinical milestone.
Background
PaxMedica, Inc. is a clinical-stage biopharmaceutical company focusing on developing innovative anti-purinergic drug therapies for neurological disorders. With a relatively small float and a market capitalization of $3 million, PaxMedica boasts a robust portfolio of product candidates targeting neurodevelopmental disorders such as Autism Spectrum Disorder, among others.
Key Milestone Achievement
Yesterday, PaxMedica announced the successful completion of three pivotal registration/validation batches of PAX-101, an intravenous formulation of suramin, marking a significant step towards submitting a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) by Q4 2024.
Upon FDA approval, PAX-101 could potentially become commercially available in the U.S. for the treatment of Stage 1 Human African Trypanosomiasis (HAT), a fatal neglected tropical disease.
Howard Weisman, Chairman and CEO of PaxMedica, emphasized the importance of this achievement, stating, “This is a very significant milestone for PaxMedica as it endeavors to move PAX-101 towards an NDA submission.” He underscored the company’s commitment to further clinical investigation of PAX-101 for Autism Spectrum Disorder and its aspiration to serve as a reliable global source of this life-saving drug.
Conclusion
In conclusion, PaxMedica, Inc.’s significant after-hours surge underscores the market’s excitement surrounding the company’s clinical advancements. With key milestones achieved, investors are closely monitoring PXMD’s progress as it seeks potential FDA approval and addresses critical unmet needs in neurology.
