Enochian Biosciences (NASDAQ:ENOB) stock price has set for the stars this morning – with pre markets predicting the stock to open 240% higher. The significant increase has come off the back of a press release confirming an FDA meeting which successfully “aligned” with Enochian’s strategy for a HIV cure. This news although a first of many steps forward, provides an exciting opportunity for investors to enter an untouched market with huge upside potential.
“We considered the meeting to be very successful, with strong alignment between Enochian’s approach to developing ENOB-HV-01 and the comments of the FDA reviewers,” Dr. Mark Dybul, Executive Vice-Chair of Enochian BioSciences.
Why is ENOB soaring 240% higher today?
Today Enochian Biosciences announced positive results from their Initial Targeted Engagement for Regulatory Advice (INTERACT) meeting with the FDA. The meeting involved the FDA defining the future clinical direction for ENOB-HV-01, ENOB’s HIV treatment. ENOB considered the INTERACT a success because Enochian’s approach to developing ENOB-HV-01 strongly aligned with that of the FDA’s proposal.
A positive INTERACT meeting is an essential steppingstone to the filing of an Investigational New Drug Application (INDA). If ENOB can successfully catapult ENOB-HV-01 into the INDa endzone, then trials could be on the horizon.
Human Immunodeficiency Virus (HIV) holds the potential to cause AIDS. AIDS can be a life-threatening disease. Because HIV prevents your body from fighting back against the disease. ENOB’s treatment strives to significantly increase the engraftment of gene-modified cells that are resistant to HIV.
Engraftment is key to rebuilding your immune system. The failure to engraft gene-modified cells that are resistant to HIV is a large reason why the disease remains life-threatening. Thus, when ENOB shows early signs of a potential HIV treatment, the bulls charge at an unstoppable speed.
Is Enochian Biosciences (NASDAQ:ENOB) worth the investment?
Before I start, I am obliged to remind our viewers that this not advice, only general commentary from my extensive research into this area.
After such a significant increase in the stock price this morning, it is inevitable we will see a drawback over the next few days. With such prolific news in an area which remains untouched in finding a cure – the upside potential of this company is quite extraordinary. After the stock draws back, we will likely see another short rally of less significant magnitude before the stock finds it’s “new normal” equilibrium. An entry after the first drawback, may prove effective as short term investors drop shares and take the cash.
The big question is are you looking to ride Enochian Biosciences through the waves of optimism until they can successfully trial and manufacture their ENOB-HV-01 cure? If so the entry price for this stock can vary depending on what you believe is Fair Value for this year, and to what price this company should be worth in 5 years time.
If you are looking for a short term gain, you may already be too late. The first few hours of todays trading will determine this. If we see a fast drawback, the stock will likely slide further until the stock finds strong resistance. If the stock continues to rally throughout the day, we could be looking at a few days before the stock loses traction. In both scenarios, the opportunity to ride the initial rise may prove a timing issue. This company shows some very nice, long term upside potential for years to come. The balls now in your court, do you take the shot or do you play the waiting game and find a better option?
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The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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Written by Tyger Fitzpatrick, Current Founder and Patrick Mcloughlin, Senior Manager.