What happened
Shares of the anti-cancer radiopharmaceutical company Point Biopharma Global (PNT) were down by a hefty 25.1%, on sky-high volume, as of 12:10 p.m. ET Tuesday afternoon. The cancer specialist's shares are under heavy pressure today in response to an upcoming poster presentation entitled "Efficacy and Safety of 177Lu-PNT2002 Prostate-Specific Membrane Antigen (PSMA) Therapy in Metastatic Castration Resistant Prostate Cancer (mCRPC): Initial Results from SPLASH."
The poster will reportedly be presented at the ESMO Congress in Paris on Sept. 11, 2022. The accompanying abstract published on the ESMO Congress website paints an overall favorable picture of PNT2002's clinical profile in this hard-to-treat patient population. The company said an e-poster containing updated data will be also be published on the day of the presentation.
So what
Why is the biotech's stock getting slammed over a fairly positive clinical update? Point Biopharma has been a red-hot target for short-sellers in 2022. At last count, short-sellers held a whopping 17.5% of the biotech's outstanding float.
The long and short of it is that bears appear to be taking advantage of the high-risk nature of clinical trial data to drive Point Biopharma's shares lower today.
Now what
Is Point Biopharma's stock a buy on this double-digit dip? While clinical trial data are always a risky investing thesis, this hefty sell-off doesn't appear to be warranted. In fact, it wouldn't be surprising if the biotech's stock rebounded ahead of this upcoming presentation. In other words, bargain hunters may indeed want to think about buying Point Biopharma's stock on this recent weakness.
