Acasti Pharma [NASDAQ: ACST] has been one of the biggest gainers in the last 2 months. It started gaining bullish momentum in May and has been gaining ever since. At the time, it was trading at $0.85, and has rose to hit highs of $2.1. Looking at its more short-term price action, there is a possibility that this bullish momentum may continue.
Last week, Acasti was forming higher lows, with the 100-day moving average acting as key support. That’s an indicator that bulls are in control of the market. In intra-day trading, Acasti eased up slightly in Monday’s trading session to hit a low of $1.72. However, it recovered towards the end of the day to close at $1.96. It’s a positive indicator that bullish momentum is still strong in this stock.
There are multiple things that support the bullish sentiment surrounding this stock at the moment. For instance, on the 24th of June, the company announced that it had received an allowance for its second patent in China. The patent is about the company’s concentrated Omega-3 Phospholipid and covers a number of methods used in the treatment of cardiovascular diseases, neurodegenerative diseases among others. This patent helped strengthen the company’s IP portfolio, and gives it competitive advantage in China, the world’s 3rd largest market for pharmaceuticals. It’s seems to be a huge potential boost to the company’s growth going into the future.
The company also issued its 2019 business update on the 26th of June, and it was positive. Part of the announcement was that, their phase 3 clinical trials had achieved a 100% patient randomization in clinical trials. In terms of finances, the company’s losses rose from $21.5 million to $51.6 million. However, this is due to the research and development costs for the phase 3 program.