GlycoMimetics, Inc. (Nasdaq: GLYC) is it ready to bounce after big drop in price?

GlycoMimetics, Inc., is a biotechnology and medical research firm. Should it be on your radar of stocks to watch and buy?

Company Overview

GlycoMimetics, Inc. is a biotechnology company specialising in glycomimetic drugs. The company works to identify and develop this specific class of drugs. It has been developing a lead drug candidate, GMI-1070 (Rivipansel), which is believed to serve as a potential treatment against vaso-occlusive crisis (VOC), a serious problem in sickle cell patients.

The company also has additional drugs in development. There are the GMI-1271, a drug for the combination therapy of a host of hematological diseases such as acute myeloid leukemia (AML) and multiple myeloma (MM) and GMI-1359, an E-selectin and chemokine receptor targeting drug candidate.

Industry Background

GlycoMimetics, Inc. operates in the biotechnology sector. Supernus, Vanda, and Genentech are its three foremost competitors. Founded in Maryland in 2005, Supernus Pharmaceuticals (Nasdaq: SUPN) generates at least $400 million more in revenue than GLYC.

Headquartered in Washington, Vanda Pharmaceuticals (Nasdaq: VNDA), just a bit larger than GlycoMimetics, was established in 2003. Genentech (NYSE: DNA) has its headquarters in California. It is one of the largest biotechnology companies in the world, generating over  24,762,702% more in revenue than GLYC.

Growth Strategy

GLYC’s growth is based on product development and strategic collaboration. The company has existing collaborative ties with other corporations and institutes such as the National Cancer Institute (NCI) and the Haemato Oncology Foundation for Adults in the Netherlands (HOVON).

These partnerships have especially proved to be useful for the clinical trials the company has been carrying out for its drug, Uproleselan, for AML. GLYC has also collaborated with Pfizer on its rivipansel investigative works, till the unfortunate failure of the lead drug at secondary endpoints.

Financials

On March 6, 2019, GLYC reported its financial results for the full year 2018, and for the last quarter of the year ended December 31. The company was in a very strong financial position, with cash and cash equivalents of $209.9 million being held at that time by the company. As of December 31, the company had just $123.9 million in cash.


As of August 15, GlycoMimetics, Inc., (Nasdaq: GLYC) has a market capitalisation of approximately $137 million, with its share price hovering around the $2.91 mark. The stock has a 52-week range of $2.64 to $16.35. And the average volume of shares traded over the past 10-day period is 3.135 million.

Outlook

On Monday, August 5, GlycoMimetics Inc., (Nasdaq: GLYC) dropped by 53% in premarket trade. Earlier, the previous Friday, the company has announced that its lead drug candidate, Rivipansel, had failed secondary endpoint tests. The fall corresponded in GLC shares dropping by roughly 3.6% year to date.

Considering that the S&P 500 has gained 17% YTD, this performance is not so impressive. However, in the previous two months, GLYC had risen by about 1.7% and so a vital question to ask: is the stock about to bubble up again? Maybe. Hence, the premise to buy is that it is already in the oversold region. As of August 15, its Relative Strength Index (RSI) reading was 14.27, strongly suggesting that it is already oversold.

About Oluwa Solademi 17 Articles
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