What happened

Shares of Ambrx BioPharma (AMAM) fell 28.1% for the day as of late Tuesday afternoon. The clinical-stage biotech announced Monday that it was moving from trading on the New York Stock Exchange to the Nasdaq Stock Market, effective March 16.

When the company made the announcement, the stock nearly doubled on Monday, going from $6.43 at the open to closing at $12.54. The move downward on Tuesday is more of a modulation from what is seen as an overreaction to the announcement. The stock is up 98% over the past year and more than 308% so far in 2023.

So what

The company focuses on oncology therapies through the use of antibody drug conjugates and other engineered therapies to stimulate the immune system. Looking at that focus, it better fits the Nasdaq's image as the exchange for cutting-edge growth companies. It's also significantly cheaper for companies to list on the Nasdaq.

Interestingly, on Nov. 23, the NYSE notified Ambrx that the company was in danger of being delisted after its shares fell below $1 for 30 consecutive days on Nov. 23. However, the stock had bounced back considerably since then.

Now what

There's a lot of risk involved with the stock. The company's lead therapy is ARX788, which had promising phase 2 trial results against metastatic breast cancer patients who had previously been treated by the chemotherapies Enhertu and Kadcyla. The drug is also being tested against other cancers, and the company said it could have the potential of $1 billion in peak annual sales.

Ambrx is partnering with Chinese pharmaceutical company NovoCodex Biopharmaceuticals on the drug. In October, the company said it was forming the partnership to enable it to continue operations through 2025.