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Why PolarityTE Stock Fell in June

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Product candidates

Other product candidates in PolarityTE’s (COOL) pipeline include the following:

  • AdipoTE for optimizing the delivery of fat used in procedures on the breasts, buttocks, and face
  • AngioTE for addressing vascular regeneration
  • NeuralTE for patients with peripheral nerve injuries, chronic compression due to joint replacements, migraines, and carpal tunnel syndrome
  • UroTE for the delivery of urogenital epithelium for processes such as urethral strictures, bladder reconstruction, and ureter reconstruction
  • LiverTE for addressing various causes of liver failure, such as fibrosis, cirrhosis, and surgical resection of the liver
  • BowelTE for aid in regenerating bowel tissue

Citron report

In a report on June 25, Citron Research called for a halt on PolarityTE stock immediately before insiders could enrich themselves further and accused the company of deceiving its investors. The report says that PolarityTE raised funds on the basis of a patent application that was rejected just days before the offering. Further, on the same day, shareholder rights law firm Johnson Fistel announced the investigation of potential violations of federal securities laws by PolarityTE. On June 25, PolarityTE was added to the Russell 3000 and Russell 2000 Indexes.

On June 26, another law firm, Glancy Prongay & Murray, announced an investigation into PolarityTE on investors’ behalf based on the Citron report.

In a press release on June 27, PolarityTE disputed any claims of insider selling in the last 12 months, noting that a “non-final rejection” from the US Patent and Trademark Office is part of the normal process and that the process of patent prosecution can be lengthy.

From a high of $41.22 on June 21, PolarityTE stock fell ~36% to $26.41 on June 26.

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