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Pharma Stocks With Dip Buy Opportunities: STAB

As a clinical-stage biopharma company, Statera Biopharma, Inc. (NASDAQ: STAB) is known for developing novel immunotherapies that target autoimmune diseases as well as emerging viruses and cancers. The company has been making headway in the industry with its prominent acquisition of R&D company – ImQuest Life Sciences. On February 22nd, STAB released its latest financial report detailing impressive growth in key metrics. Even though it is currently trading at a dip, investors are bullish STAB could be among the most promising pharma stocks as it releases its drugs into the market.

STAB Stock News

For years, the company has been developing its pipeline following three basic guidelines – a balanced approach, comprehensive and complex development as well as safety and foresight. By implementing those principles in its discovery, the company has created evolving therapeutics and continues to test and screen multiple cell types to ensure its drugs’ effectiveness.

In light of the company’s commitment, STAB recently reported major financial growth for 2021 with revenues of over $1.4 million – a 100% increase from the year-ago period. This massive increase was largely the result of the company’s acquisition of ImQuest Life Sciences, Inc. – a research and development company with a focus on cancer, inflammation and infectious disease treatments. 

In terms of its expenses, STAB reported operating costs of over $31 million – a massive 191% increase from its year-ago period. Even though it is currently operating at a loss, CEO Michael Handley emphasized that STAB has “taken numerous steps to further develop its clinical stage pipeline.” As of now, it has invested in the expansion of clinical trial programs for its Crohn’s disease and COVID-19 drug treatments. For this reason, Handley believes the company is “well-positioned to achieve numerous milestones in 2022.”

The company seems poised for growth in the months ahead given that its all-stock deal to acquire ImQuest Life Sciences has previously provided STAB with the assets necessary to advance its internal drug development program. By integrating ImQuest BioSciences – the drug development department of ImQuest Life Sciences – into STAB’s existing drug development operations, the company can now offer a direct evaluation of all vaccines, biologics and pharmaceuticals in preclinical development.

In this way, STAB could capitalize on ImQuest BioSciences and its ability to achieve its mission of developing new immune therapies targeting cancers, infectious diseases and autoimmune disorders. This, in turn, will allow the company to develop a competitive advantage over other players in the industry.

As of now, STAB is developing a number of drug treatments covering several widespread diseases. Currently in its phase 2 trial, the company’s lead investigational drug candidate – STAT-201 – is developed for the treatment of pediatric patients with Crohn’s disease. After the FDA granted STAT-201 Orphan Drug Designation for the treatment of Crohn’s Disease in pediatric patients, STAB intends to initiate its Phase 3 clinical trials in the coming months. Given that Crohn’s disease affects an estimated 3 million US adults on an annual basis, the upside potential for this drug is looking promising. 

The company is also capitalizing on the increase in demand for treatments of acute and post-acute COVID-19. Currently in phase 1 clinical trials, STAT-205 has the potential to treat these infections by modulating immune system functions and decreasing inflammatory responses affiliated with SARS-CoV-2 viral infections.

STAB is in prime position to achieve a breakthrough in its current studies given the proceeds from its latest direct offering. Handley has previously emphasized the company’s plans to “use proceeds from the direct offering to start the enrollment of patients in Q2 – in addition to including patients with acute COVID-19 infection in the company’s STAT-205 study”.

Recently, STAB announced it was granted approval by the Central Institutional Review Board to begin the Phase 3 clinical trial for STAT-201 in the treatment of pediatric Crohn’s Disease. Now that the sites are being selected, the company plans to include at least 165 patients in the trial – which is expected to begin as soon as Q2. As it initiates this trial, STAB could be among the best pharma stocks to buy this week.

Media Sentiment

Investor @cap_ebc seems excited about STAB’s latest financial report…

Technical Analysis

Pharma Stocks - STAB Stock Chart

Currently at a dip, STAB is trading at its support of $.6680. It shows a primary resistance near 1.04 and a secondary resistance near 1.45. Accumulation is witnessing a steep downward trend and the MACD is bearish but could be approaching a crossover soon. Meanwhile, the RSI is at 17 and continues to trend downwards – indicating the stock is extremely oversold.

Pharma Stocks - STAB Stock Chart

While these indicators highlight investors’ bearish sentiment, it could be a great entry point for investors bullish on the stock’s potential. However, the major fall in accumulation could be attributed to the growing market instability following the Russia Ukraine conflict. This is further supported a bearish MACD indicating a strong selling movement in the market.

Given that the RSI is extremely low and the stock is now trading at its support, STAB could rebound soon to test its resistance as the RSI regulates. With this in mind, investors bullish on the growth of pharma stocks could secure positions ahead of an anticipated bull run as soon as the clinical trials start in Q2.

STAB Stock Forecast

As it continues developing drugs and preparing them for clinical trial, STAB is positioning itself as an emerging leader in the biopharma industry. In light of these efforts and upcoming plans, investors are bullish on the company’s potential in the months ahead. As phase 3 clinical trial begins for STAT-201, STAB could be set for a run-up upon the completion of the trial – which is why it could be among the best pharma stocks today. Considering it is trading at a dip, securing a position in STAB could prove a profitable investment in the long-term.

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


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