Odonate Therapeutics, Inc. (ODT) shares soar as latest potential target of memes stock phenomenon

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Odonate Therapeutics, Inc. (ODT) share price was up 2.97% at market close on July 2sd 2021, bringing the price per share to $ 3.47 at the end of the trading day. Subsequent pre-market swings saw the stock soar 32.85% to US $ 4.61.

End of the development of Texetaxel

The company recently announced the cessation of development of its flagship tesetaxel treatment, as well as the intention to complete transactions related to the development of the treatment. ODT works with clinical sites to move patients from their ongoing studies to relevant and applicable alternative therapies. Compassionate use programs will see continued treatment with tesetaxel, as deemed appropriate in extreme cases.

Financial reports

March, 31stst 2021 saw the company announce US $ 133.2 million in cash, indicating an exceptional liquidity position. the 31st of Decemberst 2020 had grossed US $ 157.3 million, with the difference largely attributable to a cost of operations of US $ 24.9 million for the three-month period ended March 31st 2021. The net loss at the end of the quarter was reported at US $ 33.8 million, representing a net loss of US $ 0.90 per share. In the same period as the previous year, the company reported a net loss of US $ 30.2 million, or a net loss of US $ 0.99 per share.

Meme stock phenomenon

With the company shutting down as its main driving force, the recent rise in equity value is truly baffling. With no recent developments or changes in the fundamentals of the company, it appears that ODT has become the latest target of the meme stock market phenomenon that has raged in the stock markets since the earlier AMC and GME debacles. during this year.

About Meme Stocks

With very little reason to invest in the company, ODT owes its fortuitous rise in stock values ​​to the proliferation of memes stocks. Meme stocks are underperforming companies, with little or no reason to justify an investment, which are in high demand by retail investors. These investors are targeting downtrodden companies with high short interests in a coordinated short squeeze on social media platform, Reddit. Naturally, stocks even are packed with high risk and volatility. The upward movement relies on the strength of each link in the chain of coordination. While many are profiting greatly from this bewildering stock movement, just as many investors, if not more, are losing their investments if they are slow to pump and dump.

Future prospects for ODT

As it stands, the ODT is on the verge of collapsing, but it appears to be being kept afloat by its recent rise in stock values. Unless it releases some important news in the very near future or manages to leverage its additional capital to drive more organic growth, ODT’s future does not look bright.


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