Celldex Therapeutics, Inc. (CLDX) share price soared an incredible 736% last year, with a 19% gain in the last three months. However, the share price still remains 56% lower than three years ago. CLDX did not make any profit in the last 12 months and saw its revenue grow by 1.8%. The 5-year annualized loss of 13% further halted the financial surplus for the company with many investors skeptical about the further purchase of CLDX shares.
CLDX has also opened options for new contracts such as the put contract which has a minimum bid of $3.20 So If a potential investor was to sell-to-open a put contract, they will be buying the stock for $25.00 and collecting the premium as well, putting the cost of the shares at $21.80 in addition to the brokerage fee. This may be considered a great alternative for the investor to buy a share directly for $26.37.
Why Celldex Therapeutics (CLDX) Stock Plummeted Today
Shares of Celldex Therapeutics (NASDAQ: CLDX) plummeted 34.1% on Monday. The shares tumbled as Celldex reported results from a phase 1b study of CDX-0159 to treat people affected with chronic inducible urticaria (CIndU), a condition that has infected 0.5% of the total population. Celldex stated that 80% of patients who were evaluated for a minimum 2 of weeks after treatment with CDX-0159 experienced an immune response, However, the positive news was overshadowed by concerns about the safety profile of the drug as the company reported one patient to have been unconscious followed by shivering and sweating.
The company is expected to complete their phase 1b clinical trials in the upcoming weeks and may also report results of the phase 1b study by the end of the year.
Conclusion
Celldex Therapeutics focuses on developing several immunotherapy technologies for diseases such as Cancer and chronic inducible urticaria. A 736% has profited the shareholders immensely however many investors are skeptical about the sustainability of the increase. Furthermore, safety concerns about their biopharmaceutical products and a consistent annualized loss has halted the company stock price to further skyrocket.
