Acasti Pharma Inc. (NASDAQ: ACST) is a Canadian company operating in the biotechnology industry. It is one of the top 10 biopharmaceutical stocks showing strong bullish trends in NASDAQ, at the current market price of $0.60, with a market cap of $119.35M. On June 22nd, 2021 the company published its Fiscal 2021 year-end business update that soared the stock price up by +10.444%. In the FY21 business update, the company reported the cash and cash equivalent totaled 50.9 million as compared to $14.2 million as of March 31st, 2020. The company also shared a net loss of $19.7 million or $0.17 per share compared to a $2505 million or $0.31 per share loss on march 31st, 2020. It managed to decrease net loss by $5.8 million. The current earnings per share are -$0.17 and the P/E ratio is 20.00.
ACASTI PHARMA INC. COMPANY UPDATE
As per the news circulating in the market, On May 17, 2021, the company had a merger with a privately held biopharmaceutical company, Grace Therapeutics. Summary of the transaction agreement is available on both companies’ profile. Grace develops innovative drug delivery technologies for the treatment of rare and orphan diseases, along with other innovative products in its pipeline.Such as, three later stage assets with expected shorter timelines to achieve targeted milestones, and a strong growing intellectual property portfolio.The company itself is primarily involved in the development and distribution of drugs that treat cardiovascular diseases. The two main products in the company’s pipeline are, Capre, which is an omega-3 phospholipid therapeutic that is in Phase 3 clinical trial to treat patients with hypertriglyceridemia and, Trilogy, to test the efficacy of the latter. Chief executive officer of Acasti stated in a conference, that following this merger the company now expects to have more that 60 million cash in hand which should be enough for operating runway and filing for an NDA for GTX-104, and advance other key drugs in Grace pipeline. Both companies entered into a mutually agreed upon contract with the consent and voting of their shareholders, and are expected to have increased and secure stream of profitable outcomes. With the acquisition of Grace, Acasti is also considering and evaluating strategic options for Capre.
As per the news on May 7, 2021, Acasti pharma had received a notification of being dropped off from NASDAQ listing due to its non-compliance with NASDAQ listing rule 5550(a) for the minimum bid price of $1.00. Acasti had requested a hearing before the NASDAQ hearing panel on June 17, 2021, At the hearing Acasti presented a plan of compliance against the hearing for its commitment towards maintaining its biding price according to the rule put forth by NASDAQ regulatory. The company was expected to receive a notice from NASDAQ within 30 days.
IS ACST STOCK A BUY?
The intraday graph of this stock predicts strong bullish behavior due to the formation of double bottoms in the day trading graph. The volume has increased on the last day along with the price which is a positive technical indicator. The wall street consensus and investor expectations towards the Acasti stocks is a hold sentiment. Where 25% believe that the stock is a buy and, 75% believe to hold. Investors should hold any position they have in ACST stock. The market mutually expects to hold the stock for daily, weekly, and monthly trading till the price target rate of $2.81.
Overall, the Acasti stock is showing signs of gaining momentum. The stock has gained investor’s attention by outperforming its previous fiscal year performance. Several Wall Street analysts expect to see the stock performance better in coming years.