Wednesday was a good day for Melinta Therapeutics [NASDAQ: MLNT], as it surged 223% for the day. This followed news that it had received FDA approval for its supplementary drug administration, BAXDELA.
In pre-market trading this morning the stock is very active and its one that has caught the buzz of many traders & investors from yesterdays move. The short-term momentum is still largely bullish if it can continue its green move pre-market and on the opening bell. If it can break yesterday’s high of $7.27, it would be an indicator that bulls are still in control of the market, and could push it higher in Thursday trading.
With the FDA approval of its drug administration, MLNT’s long-term prospects could turn out to do quite well. That’s because, this supplementary drug administration will be used to treat community-acquired pneumonia, besides being used to treat bacteria related skin infections. There is a huge demand in this market, and could play a role in driving up revenues.
According to the company’s Chief Medical Officer, Sue Cammarata, community-acquired bacterial pneumonia is a growing challenge due to the increased number of old people in the population. On top of that, the increased cases of antibiotic resistance, the commonly used treatment methods for these issues may not work, and new treatment methods are required. Sue also states that BAXDELA, the drug that received approval has the potency to deal with these bacterial infections. In essence, there is lots of potential for BAXDELA to help push the company’s bottom line.
The FDA approval means that BAXDELA is now a priority for review. They have already set October 24th as the new date for review. This means the drug could hit the market soon, and 2020 could be a big start for MLNT in its top and bottom-lines.
At the moment, the company’s top and bottom-lines are not doing well. The company is still losing $154 million on sales of $95 million. The stock also hasn’t been performing well, and has a 52-week change of -94.68%, while the S&P 500 has gained by 6.11% in the same period. With BAXDELA, and its potential to help treat pneumonia, these numbers could change.
Regardless, this stock is one to keep on watch as the chart breakout was enormous yesterday on heavy volume.