Veru Stock Price is Soaring But a Drop to $6.8 is Likely

Veru stock price has been in a strong bullish trend in the past few days as investors cheer the company’s performance. The shares surged buy more than 13% on Thursday and reached a high of $14.65. It had gained by another 13% on Wednesday. In total, Veru Inc shares have surged by more than 230% above the lowest level in June. This rally has brought its total market cap to almost $900 million.

What is Veru Inc?

Veru Inc is a relatively small biopharmaceutical company that focuses on key drugs to treat prostate and breat cancer. Its breast cancer treatment producs are Enobosarm and Sabizabulin while its prostate cancer product are Sabizabulin, VERU-10, and Zuclomiphene citrate. 

The firm is also taking part in the development of a therapy to treat Covid-19. Sabizabulin is being experimented to treat the disease. In addition, VERU is creating products for the sexual health industry. These products include an internal condom and a drug for treating prostate hyperplasia. This division brings in about $50 million every year and there is a likelihood that it will keep doing well.

Therefore, Veru Inc is dealing with large industries. For example, there are over 284k new breast cancer cases every year and more than 44k deaths. Similarly, there are over 248k new prostate cancer cases every year in the United States alone. Most of its products are in phase three of testing.

Why is Veru surging?

There are two main reasons why the Veru stock price is surging. First, analysts expect that the company will receive an emergency authorization for sabizabulin to be used for Covid treatment. This happened after the firm said that its test results were published in New England Journal of Medicine. 

The report revealed that the drug led to about 55% relative reduction in mortality compared to other drugs. This is notable since Covid is still a major disease although its mortality rate has declined in the past few months.

Second, the Veru share price jumped after the firm announced the final phase of clinical trial results for sabizabulin for the treatment of prostate cancer. That announcement came in June this year. If the test results are positive, the company could see significant demand for its products.

Veru stock price forecast

The daily chart shows that the Veru stock price has been in a strong bullish trend after it submitted positive results for its sabizabulin product in June. The stock is now hovering near the year-to-date high of $17.44. It remains above the 25-day and 50-day moving averages while the Average True Range (ATR) has dropped to the lowest level since April 14th.

The outlook for Veru share price is bullish in the near term. This could see it retesting the resistance point at $17.45. In the long-term, however, Veru will likely pull back as this excitement fade. As such, we can’t rule out a situation where the shares pull back to a low of $6.8.