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ALLR Stock: Is It Noteworthy Among Drug Stocks?

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The five-year mortality rate for women with metastasized breast cancer is 30%. However, that statistic figure may soon be curbed due to Allarity Therapeutics, Inc.’s (NASDAQ: ALLR) new treatment – IXEMPRA-DRP. This is a treatment system combining Ixempra, an FDA-approved treatment for Metastasized breast cancer, with DRP, an AI system that matches patients with effective drugs. Currently, in trials to enter the European Union, IXEMPRA-DRP could lead to greater revenues for ALLR as it capitalizes on this new market. This catalyst could potentially catapult ALLR into becoming well-established among drug stocks. That being said, the stock has recently dropped due to an offering. However, its low value may not last long due to a potential short squeeze.

ALLR Stock News

ALLR is not a pharma giant but one of many small drug stocks. In fact, it has not generated any revenue since 2019. Its significance lies in its utilization of AI in order to diagnose patients and its potential solutions for the breast cancer market. Given its treatment’s potential, ALLR’s second phase trial enrollment process for EU use has been accelerated, and the results are expected in Q2.

The EU’s breast cancer market size in 2021 was $8.5 billion, and the market is expected to grow at a rate of 7% between 2022 and 2028, reaching $119.5 billion.  Healthcare is a market of inevitable demand; as such, any development in medicine not only improves lives but also enriches the marketplace. ALLR’s market advantage is its DRP system. The DRP system functions like a scratch test targeting the tumor’s mRNA and other biomarkers. It takes in that data and matches them with a drug that best suits its assessment. 

This means ALLR’s DRP works with drugs developed by ALLR and various cancer drugs in its database. This may increase the efficacy of other drugs and, as a result, cause other drug stocks to run as well as their own. It may also spare patients from exhaustion and dangerous treatments that reap no reward; the DRP’s accuracy rate in treatment efficacy is 80%. Ultimately, it provides patients with effective treatment earlier in the disease’s progression, saving many lives and qualifying them as successful treatment evaluators. That is why ALLR is one of the promising drug stocks.

In the US, the Patent system has provided ALLR with a market advantage in regard to its DRP usage. ALLR has received three patents permitting it to incorporate multiple cancer medications into its DRP system. ALLR will likely add more patients to its belt as time progresses. Along with their inclusion, more drugs would be incorporated into its DRP system, making it harder for other companies to develop DRP systems.  

There is more than one company that utilizes DRP in breast cancer treatment. The most prominent is Chosa Smart Oncology (NGM: CHOSA), which is currently in a favorable financial position, and has earlier access to the European market. That being said, the number of healthcare companies with access to DRP is very limited, and the market is vast.

The European Medicines Agency (EMA) operates with different rules and regulations than the FDA. Currently, ALLR’s IXEMPRA and IXEMPRA-DRP are in consideration by EMA. Usually, a consensus concerning the treatment occurs in the first 210 days; however, if ALLR succeeds in receiving an accelerated assessment, then it’s possible that its DRP system’s time frame will decrease to 120 days, which means that it is possible that ALLR’s products may be available in the EU later this year. 

On the 19th of April, ALLR revealed in a press release its $2.7 million public offering.  The public offering consisted of 2.86 million common stock, 7.1 million pre-funded warrants, and 10 million common warrants in order to purchase 10 million common stock. The pricing was above market, a bullish sign for the stock. Common stocks sold at $.75, while warrants sold at $.85.   

ALLR stock started to sink after a 35-1 reverse split on March 27th, which resulted in its low float of 3.8 million. Later, two impulsive moves spiked the price, an offering was made, and the stock price subsided due to a mixture of dilution and selling. Currently, the cost to borrow is extremely high at 452%; combined with ALLR’s low float of 3.8 million, a short squeeze could occur.

ALLR Stock Financials

According to its annual report, assets have drastically decreased since last year from $49 million in 2021 to $14 million in 2022. Meanwhile, liabilities have also decreased. In 2021 ALLR’s total liabilities were $30 million; they decreased to 12 million in 2022. ALLR has also managed to decrease its net loss from $26 million in 2021 to 16 million in 2022. Despite the fact that ALLR hasn’t turned a profit yet, its financials seem to be heading in a favorable direction.  

Media Sentiment

@theresa_perrin is watching ALLR in anticipation of a short squeeze.

@greatstockpicks is intrigued by ALLR’s short data.

Technical Analysis

Drug stocks ALLR stock chart

ALLR is in a neutral trend, with the stock trading sideways below the 200 MA. It is currently above the 50 MA and the 21 MA as well. The MACD is approaching a bearish crossover, and the RSI is neutral at 50. The stock is currently trading near its support, as well as its 21 and 50 MAs.

Drug stocks ALLR stock chart

A possible play would be to go long given and TP when ALLR starts making revenue, as well as when news of their attempt at entering the European market breaks out. A good stop loss would be at .027, which would indicate a break in the trend line support as well as the MA’s

ALLR Stock Forecast

ALLR is one of the promising drug stocks despite its price. Its extremely low price is due to a mixture of dilution from the public offering and selling. However, the price may increase given ALLR’s attempt to enter the European Market, and the performance of its DPR system. 

ALLR has a plethora of catalysts in the bag. They include but aren’t limited to the phase 2 results for Ixempra for EMA approval, possibly entering the EU market, developments in Dovitinib and Stenoparib throughout the FDA approval process, and finally ALLR potentially turning up a profit due to its utilization of DRP. Additionally, Its cost to borrow is extraordinarily high, and its float is low, which may result in a short squeeze. Given the potential of ALLR, it’s highly unlikely that the stock will remain so low.

If you have questions about ALLR stock and where it could be heading next feel free to reach out to us in our free alerts room!


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