Aytu BioScience, Inc. [NASDAQ: AYTU]: Some Biotech stocks have been performing well for the past couple of weeks. This has largely been driven by mergers and acquisitions, as well as positive results from drug tests. The latest biotech gainer is AYTU. This stock closed Monday trading in bullish territory, gaining by 5.41% to close the day at $1.95. That’s in spite of the fact that major stock indexes eased up in the day. The S&P 500 closed the day 0.48% lower, while the NASDAQ closed the day lower by 0.78%. One of the factors behind AYTU’s strong showing on Monday trading, was the publication of its clinical study results for Natesto.
Natesto is AYTU’s testosterone medication that is used in the treatment of male hypogonadism. It can also be used in the treatment of some types of breast cancer. According to the company, acceptance of its Natesto manuscript in the journal of Endocrine Society is an indicator that Natesto achieves similar symptom improvements in patients, no matter the level of testosterone deficiency. According to the company’s CEO, Josh Disbrow, clinical evidence supporting the efficacy of Natesto is growing. This, he believes, will serve in setting Natesto apart from other testosterone treatments in the market.
Looking at this stock’s price action, it seems to be in a consolidation phase at the moment. It shot up to a high of $2.4 in early Monday trading, before correcting and flat-lining around $1.9, a level that is now providing some short-term support. If it holds, AYTU could possibly regain bullish momentum in the day. A rally that pushes it past Monday’s high of $2.4, which is now resistance, could be an indicator of increased bullish, and possible gains for AYTU on Tuesday’s trading. Such price action would be a continuation of a 1 month bullish rally for this stock.