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What’s Behind the 28% Hike in SCYNEXIS Stock Last Week?

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Stock performance

SCYNEXIS (SCYX) witnessed a 28% rise in its stock price in the week ended May 18. On May 18, the stock closed at $1.63, which represented a 55% increase from its 52-week low of $1.05 on April 25. On May 18, SCYNEXIS stock closed at $1.63, which is ~14.4% growth from its previous close of $1.43 on May 17. SCYNEXIS stock rose ~27% over the last month.

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About SCYNEXIS and reasons for the stock price hike

SCYNEXIS is a biotechnology company focused on the development of innovative therapies for the treatment of patients with difficult-to-treat and life-threatening infections. In May 2018, the U.S. FDA (Food and Drug Administration) granted SCYNEXIS’s SCY-078, an oral and intravenous antifungal drug for the treatment of vulvovaginal candidiasis (or VVC), “Qualified Infectious Disease Product” (or QIDP) and “Fast Track” status. The QIDP status of SCY-078 will allow Scynexis five years of additional market exclusivity in the US market.

In May 2018, SCYNEXIS also completed the enrolment of phase 2b, the dose-evaluation trial of oral SCY-078 for VVC. SCYNEXIS anticipates results in July 2018. SCYNEXIS is also conducting preclinical studies with a liposomal formulation of SCY-078. The company plans to initiate phase one trials with liposomal SCY-078 for the evaluation of safety and tolerability in the third quarter.

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Analysts’ recommendations

Of the eight analysts tracking SCYNEXIS in May 2018, three of them recommended a “strong buy,” while four analysts recommended a “buy.” One analyst recommended a “hold” in May 2018. On May 21, SCYNEXIS had a consensus 12-month target price of $6.08, which represents a ~273.01% return on investment over the next 12 months.

Peer ratings

Of the 12 analysts tracking Catalent (CTLT) in May 2018, ~75% of the analysts recommended a “buy.” Among the 22 analysts tracking Pfizer (PFE) in May 2018, ~50% of them recommended a “buy.” Of the 29 analysts tracking Celgene (CELG) in May 2018, ~52% of them recommended a “buy.”

On May 20, Catalent, Pfizer, and Celgene had consensus 12-month target prices of $47.82, $39.6, and $114.14, which represents ~18.9%, ~11.1%, and ~45.6% return on investments over the next 12 months.

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