vTv Therapeutics (VTVT) stock soared 34 percent on April 13. The rise was related to the FDA issuing the coveted breakthrough designation for the company’s product candidate. What is VTVT's stock forecast and is it a good buy now?
vTv Therapeutics is a clinical-stage biopharma company. It’s focused on developing drugs to treat a range of conditions from diabetes to psoriasis. It’s also working with partners on treatments for primary mitochondrial myopathy, chronic obstructive pulmonary disease, and renal disease.
vTv Therapeutics (VTVT) stock news
On April 13, vTv Therapeutics announced that the FDA granted breakthrough therapy designation for its product candidate TTP399. The designation relates to the use of TTP399 in the treatment of type 1 diabetes, which is a big deal.
The designation makes TTP399 eligible for additional FDA support and an expedited review timeline by the regulator. The product could come to market sooner than previously expected.
In a Phase 2 study assessing its safety and efficacy, TTP399 returned positive results. The FDA looked at those results and concluded that TTP399 could provide a major boost to the fight against diabetes.
vTv Therapeutics (VTVT) stock price forecast
The FDA action has made investors curious about vTv Therapeutics' stock forecast. First, the stock has traded in the $1.44–$4.75 band over the past year. At the current price, the stock has climbed about 140 percent from its low and sits less than 30 percent away from its recent peak. After VTVT stock popped more than 30 percent on the breakthrough designation news, investors are wondering whether it can keep rising or if it will fall.
vTv Therapeutics' stock forecast continues to lean bullish. The consensus target price of $6.75 implies more than a 96 percent upside potential from the current level. The high target price of $7.50 implies about a 120 percent upside.
Could Reddit investors turn vTv Therapeutics into the next GameStop?
The GameStop (GME) short squeeze that left Wall Street elites scratching their heads proved that retail investors on Reddit can move the markets. The GME squeeze delivered huge gains for small investors. Since then, investors have been wanting to know which stock will be the next GameStop.
Reddit investors target heavily shorted stocks with a low-dollar price, usually in the penny stocks zone, for a short squeeze. VTVT's stock price of about $3 makes it a potential Reddit target. However, its low short interest of just 10 percent doesn’t offer enough incentive to initiate a squeeze.
vTv Therapeutics (VTVT) stock is a good investment.
The FDA breakthrough designation for TTP399 is good news for vTv Therapeutics and its investors. First, the designation has been widely covered in the press and made the company better known.
For example, vTv Therapeutics is being viewed as joining the ranks of Pfizer, Sanofi, and AstraZeneca in the type 1 diabetes treatment market. Institutional investors’ involvement with VTVT stock has been light at just 5 percent ownership. That might change after the FDA designation and the massive publicity for vTv Therapeutics that has come with it.
Second, the FDA breakthrough designation has just increased TTP399’s chances of making it to the market, at least faster than previously thought. The news also brings vTv Therapeutics closer to more revenue. The global type 1 diabetes treatment market is on track to reach $9.6 billion by 202 from $5.6 billion in 2018.
Buying vTv Therapeutics (VTVT) stock
Looking at vTv Therapeutics stock forecast, it has more room to run. Therefore, it isn't too late for investors to get in now. Also, for investors browsing for the best penny stocks to buy in 2021, VTVT stock looks to be a strong candidate to consider, particularly after the FDA breakthrough label for TTP399.