Forte Biosciences Inc. (FBRX), a clinical-stage biopharmaceutical company, has seen a decline of 4.58% in premarket trading session. As a result of that, FBRX stock is changing hands at $3.96. On Wednesday, FBRX stock closed the day at $4.15, after a decline of 0.95%.
Investigations against FBRX
FBRX stock is in a constant state of decline due to the fact that in recent days, numerous law firms have actively been pursuing investigations against company. They include Pomerantz, Schall, Bronstein, Gewirtz and Grossman beside others. The investigations are focused on finding out whether the company issued any misleading statements or failed to disclose the information. On September 2nd, FBRX announced that the topline data for its phase 2 trial of FB-401 didn’t meet statistical requirement for primary endpoint of EASI-501. As the company announced this news, its shares fell by 80% on next trading day.
Equity inducement award
On 3rd of August, FBRX announced the issuance of equity inducement award. The award is a primary requirement as mentioned by NASDAQ Stock market rules. The company’s board of directors compensation committee approved the grant of 90,000 shares of common stock to a new non-executive employee under the NASDAQ Listing Rule 5635(c)(4). The company said that the award was made outside its current equity plan. The award would have terms and conditions consistent with company’s 2021 equity incentive plan.
Q1 2021 financial results
On 10th of May, FBRX announced the quarterly results for first quarter of 2021, ended March 31st 2021. According to the details, the company had cash and cash equivalents of $54.8 million on 31st of March. The company said that research and development expenses for the quarter stood at $3.3 million, while during the equivalent period of 2020, these were $1.4 million. The general and administrative expenses were $1.4 million during the quarter, while during equivalent period of 2020, these were $0.7 million. The company bore a net loss of $4.8 million during the quarter, while during the equivalent period of 2020, it was $2.05 million. The net loss per basic and diluted share was $0.36, while during same quarter of 2020, it was $0.97. Paul Wagner, Ph.D., CEO of Forte Biosciences, commented on the occasion that the financial performance indicates the operational efficiency of company, and hoped for further improvement in results in future.
Fiscal 2020 annual results
On March 24th FBRX announced the annual results for fiscal year 2020. The company ended the year with cash and cash equivalent of $58.8 million. The research and administrative expenses during the year stood at $10 million. The general and administrative expenses during the year were $4.2 million. The net loss bore by the company during year stood at $46.48 million. The net loss per basic and diluted share was $6.32 during the year. All in all, the performance was pleasant, but required further improvement in future times, as commented by Paul Wagner.
What’s ahead for FBRX stock?
Indicators don’t help the cause of FBRX stock very much. During last one quarter, FBRX stock has declined by some 89.66%. But on a positive side, it’s expected that the EPS for current year could increase by 84.30%. So, potential investors should keenly look out for the risk associated with the FBRX stock.
