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The premarket can be an exciting time in the stock market. With companies releasing news early, giving investors time to digest that news before they react, the premarket session can be highly active - and today is no different.
The premarket session is active this morning. Here’s what’s happening:
Key Points
- GeoVax is climbing on World Health Organization news about mpox.
- Certara launched a new version of its software to help biotech companies develop products.
- United Therapeutics is climbing on plans to build a new research center.
- Cirrus Logic is having a rough day with no real news driving the downward movement.
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GeoVax Is Up Over 50%
GeoVax (Nasdaq: GOVX) is making a run for the top in the market this morning on high volume. The stock is up over 50% following Friday’s gains of over 100%. So, what’s happening?
The gains aren’t the result of data, and while GeoVax announced that it will present at the Emerging Growth Conference in a couple of days. But, the announcement of the upcoming presentation isn’t what’s driving the stock upward. Instead, it’s news from the World Health Organization (WHO).
A recent announcement from the WHO declared mpox as a global health emergency. Moreover, the European Centre for Disease Control and Prevention announced that there are likely imported mpox cases in Europe. So, what does that have to do with GeoVax?
GeoVax is a clinical-stage biotechnology company that has a core focus on vaccines. Moreover, the company is already in the process of developing a vaccine for mpox. And, since the company is already in the process of developing a vaccine for the virus, it has a head start in what could be a massive market.
Nonetheless, while GeoVax shares have more than doubled over the last couple of days, it’s important to consider the risk before diving in. As a clinical-stage biotechnology company, GeoVax comes with risk, but it could prove to be a strong investment in the long run if its mpox vaccine proves effective.
Certara Is Up Nearly 8%
Certara (Nasdaq: CERT) is a biotechnology company, but it operates a bit differently than others. The company is focused on model-informed drug development - using software to determine likely outcomes in the drug development process. And, the company has been pretty successful in the space. So, why is the stock up over 8% on strong volume?
On Friday, the company announced the launch of its newest piece of therapeutic development software, Phoenix version 8.5. The software offers pharmacokinetic, pharmacodynamic and toxicokinetic modeling and simulations. This can give the companies that are developing therapeutics more information about whether or not the therapeutics they’re developing are likely to work for the indications they’re targeting, how the medication may work with, or interfere with, other therapeutics, and potential toxicities that may come along with treatment.
The company’s Phoenix 8.5 software solution is a hosted service. That’s important as it gives users a lower cost of ownership while maintaining a gold standard in software performance. Nonetheless, the launch of the newest version of Phoenix is exciting news for Certara as it could mean an influx of revenue and increased profitability are on the horizon. So, it’s not surprising to see that investors are pushing the stock up this morning.
United Therapeutics Is Up Nearly 10%
United Therapeutics ( Nasdaq: UTHR ) is another stock making a strong run for the top. But, unlike the two stocks above, there has been no news. So, what could be driving the premarket movement?
The gains seem to be a reaction to news that the company plans to invest $100 million in the development of a pig-to-human organ research center in Minnesota. Development on the center is expected to start soon while it is expected to be fully operational by the year 2027.
The research facility has the potential to help United Therapeutics further expand its development programs - which could pay off in a meaningful way in the long run.
Cirrus Logic Is Down Nearly 8%
While the three stocks above are experiencing significant growth in this morning’s premarket session, that’s not the case for Cirrus Logic ( Nasdaq: CRUS ). Unfortunately, this stock is on the losing sign of the coin, trading down 8% on strong volume.
So, what’s causing the downward movement?
Although news does move the needle, you don’t always need it to cause a frenzy in the market. And, when it comes to Cirrus Logic, there has been no news released. In fact, the downward move in the stock’s price seems to be the result of trading.
You see, movement in the stock market is typically cyclical. Upward movement is followed by downward movement and vice versa. Over the past couple of weeks, Cirrus Logic has been making a dramatic run for the top, reaching a technical barrier that market participants call resistance last week.
With resistance met, traders know that there’s a high likelihood the stock will start to trend downward, at least for a session or two. So, they seem to be banking on those expectations - sending Cirrus Logic stock down in the process.
Final Thoughts
This morning’s premarket session is a highly active one, and with last week’s announcement from WHO, it’s not surprising to see that some of the biggest gainers are in the biotech space.
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