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STAB Stock – Onwards and Upwards

Developing a therapy or drug treatment is a lengthy process that requires approval from federal authorities before it is profitable. In the meantime the company must devote its funding to research and development. But once approved, the payoff can be significant thanks to the company’s patents and commercialization of their product. In the final phase of its clinical trial for a treatment targeting pediatric Crohn’s Disease, the clinical-stage biopharma company, Statera Biopharma, Inc. (NASDAQ: STAB) is making headway as it develops novel immunotherapies targeting emerging viruses, cancers, and autoimmune diseases. The relatively unknown STAB stock has increased roughly 27% over the last 4 days as it gains more attention.

STAB Stock News

STAB is a clinical-stage biopharma company developing immunotherapies for Crohn’s Disease, Pancreatic Cancer, and COVID-19. This means STAB is pushing the frontiers of medical management for these diseases by using its therapeutics to harness and trick the body’s immune system into defending itself against autoimmune diseases. 

It’s worth noting that STAB is currently in the third and final Central Institutional Review Board approved phase of their clinical trials for its treatment of pediatric Chrohn’s disease. Its previous trials were promising and could prove to be less financially burdensome than competing treatments.   

In the pediatric population, Crohn’s disease is thought to be one of the most prevalent chronic conditions, and up to 30% of individuals are diagnosed with Crohns Disease before becoming teens. Approximately 3 million Americans suffer from Crohn’s disease, but that number is considerably smaller for pediatric cases which means STAB is targeting an underserved segment of the population. This is why the FDA granted their treatment – STAT-201 – with the Orphan Drug Designation giving STAB some government assistance in terms of marketing approval and a longer period of time during which it has sole marketing rights.

Now that STAB is in the final phase of their clinical trials, it is comparing the safety and effectiveness of STAT-201 compared to a placebo. Looking back at its Phase 2 study, STAT-201 induced remission in 67% of participants and endoscopic studies demonstrated that 43% of participants had healing in the lining of their gastrointestinal tract without any serious adverse effects.  Right now the company is gathering at least 165 patients for its final trial which is expected to begin as soon as Q2.

Statera has been making progress on other fronts as well. Earlier this year it acquired the research and development company ImQuest Life Sciences in an all-stock deal – giving it the assets necessary to advance its internal drug development program. Integrating the drug development department of ImQuest Life Sciences into STAB’s existing drug development operations means that it is now able to do a direct evaluation of all vaccines, biologics and pharmaceuticals in preclinical development.

Over the long-term this will likely help STAB develop new immune therapies targeting cancers, infectious diseases, and autoimmune disorders. But the acquisition did take a toll on the company’s bottomline. Although this was expected, the company’s CEO – Michael K. Handley – is confident that this acquisition has positioned STAB to achieve numerous milestones in 2022. 

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. And STAB has since taken numerous steps to further develop its clinical stage pipeline with this in mind. 

For example, demand for treatments of acute and post-acute COVID-19 has led Statera to start its phase 1 clinical trials for STAT-205 which can help decrease its inflammatory responses. The company plans to use the proceeds from its direct offering to start enrolling patients with acute COVID-19 infection for its study in Q2 with the goal of having its preliminary data ready this year.

Media Sentiment

@RealtorStarShar is bullish that FDA news can push the stock to higher levels

Technical Analysis

Despite STAB’s strong fundamentals, the stock has been hitting bottom. The time and money it takes to fund the research for these treatments can push a stock like STAB to new lows. Not so long ago, Statera was trading above $4 and over the long-term STAB was typically valued well above $1.50.

STAB stock chart

STAB stock bottomed out in November of 2019 hitting roughly 50 cents but quickly bounced back with a 581% increase in January. This massive increase was in part thanks to STAB’s low float of 27 million. 

STAB stock price

Right now the STAB stock price is $.81 with a support at $.64 and a resistance at $1.47. The stock is up about 27% over the last 4 days and could be ready to continue the climb with a bullish MACD and RSI moving up from 59. The RSI recently became oversold as accumulation took a hit earlier in the month and could dip again for a potential technical play.

STAB Stock Forecast

In summary, STAB could show considerable potential with its low float of 27 million. It’s no surprise that the stock had a high of $7 in February of last year and as it works towards finishing the final phase of its clinical trial STAB could move back to $1.50 or more with positive results. Because it’s trading at a dip right now, bullish investors could secure a position here before its upcoming catalysts. But it’s important to note that biopharma stocks move on binary events like FDA approval which means STAB might be best for a swing or long-term hold. 

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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