The actions of Pharmamar they lose more than 21 percent in the year, although the fall from the February highs of 119 euros exceeds 53 percent.
Despite the fact that this punishment is great enough to unleash the appetite of bargain hunters, the sources consulted by finance.com are not very optimistic about the stock market prospects of the Galician group.
The company needs a rebound of at least 15 percent to shake off the downward pressure and move to a side scenario at best.
2021 will be a year to forget in Pharmamar. Very far away is the rise of 65 percent that the company marked in the year of the pandemic or the 227 percent that was scored in 2019.
The recent deal to market Zepzelca in Turkey or the gentle step back from its only bearish investor, the fund AHL Partners, they are little pills that sweeten the final stretch of a fateful year for the company.
Aplidin shipwreck takes its toll on Pharmamar
At the beginning of May, just as the great decline began for Pharmamar the loss of 100 euros, the group promised them very happy.
“The objective is to commercialize Aplidin at the beginning of 2022”, said in an interview with Finanzas.com the president of the Galician group, Jose Maria Fernandez Sousa.
But these plans fell apart within a few months. As exclusively announced by Finanzas.com, the Galician biopharmaceutical delayed Aplidin’s commercial horizon until March 2022.
The shortage of hospitals to test the drug against the coronavirus was the reason for a decision that fell very badly in the market and accelerated the falls in the stock market of Pharmamar.
However, the explosion of infections by the omicron variant will offer a new opportunity to the Galician group. Before this new strain was known, March seemed like an eternity, but now there will be no shortage of patients with whom to accelerate the trials.
As Fernández Sousa himself recognized, the drop in incidence is the main enemy of trials, due to the difficulty of recruiting new patients.
Zepzelca: the medically star, in the shade
Phamamar’s sour trading story in the past year made headlines about Aplidin.
The leading role of this antitumor reconverted to antiviral stood at the level of Zepzelca, a compound considered by analysts to be the true star of Pharmamar.
The great milestone for this lung cancer drug is its final approval in the United States. Again, plans to go to market have gone awry.
The final trial will begin in January and the company expects to finish it in May 2025. This is a considerable delay, as investment banks estimated that the study would be ready by the end of 2022.
Bounce Options for Pharmamar
With this flow of mostly negative news, Pharmamar’s price has been under the yoke of bears since mid-February.
It has “little bellows and has been maintaining a downward trend practically since the beginning of the year, although it has tried to regain some ground up to 56 euros,” he said. Manuel Pinto, XTB analyst.
The stock “is still unable to overcome the downward guideline of the correction movement, which has a significant acceleration and is now going through 58 euros,” he said. Josep Codina, dDirector of Journal Analysis INVESTMENT and from finance.com.
To think about leaving the bearish scenario and moving to a lateral range, the price not only needs to recover this level but also to exceed the area of 63 euros. To get here Pharmamar you need a rebound of around 15 percent.
In this case, “yes we could see a floor structure that could accelerate the rebound and that would give options to seek the previous relative highs around 70-72 euros,” he said. Codina.
In the very short term, Diego morin, IG analyst, points out that a weekly close this Thursday above 56.6 euros could accelerate the rise to 60 euros, “as long as it breaks the short-term bearish guideline.”
It would be a consolation prize for a black year. None of the experts consulted see much visibility beyond 72 euros.