Hancock Jaffe Laboratories Inc [HJLI] – What next after Bullish breakout?

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Hancock Jaffe Laboratories Inc [NASDAQ: HJLI] is in a bullish breakout at the moment.  After trading in a range for months, the stock has shot up by 130%. The breakout follows the company’s announcement that follow-up data on two more VenoValve patients showed improvement compared to their condition before the surgery. The two are part of the company’s first human studies in Colombia.

The company stated that the two patients included an 86-year old male, whose reflux had improved by 62%. The study also found that on the Venous Clinical Severity Scores, the patients showed an improvement of 42%, while pain improved by about 79%. Besides these two patients, the company had reported that 8 other patients had completed the first-in-human trials. Of the eight, seven patients had an over 50% success on Venovalves, VCSS, Reflux, and VAS. Commenting on the success, the company’s CEO Dr Marc H. Glickman said that the results were a major improvement and that they would drive excitement in the world of vascular treatment.

The treatment will now go to the next step of more monitoring and undergo several tests as required by the FDA.  The company also announced that it expected to file for a pivotal trial in Q1 of 2021.

What next?

With the progress that the company has made so far with this treatment, positive sentiment is likely to remain high, until 2021 when it enters the pivotal trial. That’s because approval of this treatment would mean a huge bump in revenues and an increase in the intrinsic value of the stock.

The stock also stands to benefit from two major market-related factors. The first one is the increased fear of market overvaluation. Since the S&P 500 hit a new high recently, momentum has become more subdued. Investors are looking more into tech, and stocks that have strong growth fundamentals. From this perspective, HJLI offers good prospects that could see it grow revenues long-term, due to the positive progress with regards to the treatment currently undergoing human trials.  This is likely to see more money flow into the stock, especially now that it has broken resistance.

There is also the possibility of a market-wide rally if a COVID-19 vaccine is found soon. There is growing consensus in the scientific community that a vaccine could be found before the end of 2020. If this happens, a stock with strong momentum such as HJLI could rally even more. Its momentum could be boosted if the vaccine comes out at around the same time as the pivotal trial for the company’s treatment in 2021.

About Hancock Jaffe Laboratories Inc

Hancock Jaffe Laboratories Inc is a biotech company that develops tissue solutions for cardiovascular ailments. The company is headquartered in Irvine, California.

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