What happened
Shares of Belite Bio (BLTE 4.61%) were up more than 26% for the week as of Friday's close after rising as much as 35.7%, according to data provided by S&P Global Market Intelligence. The clinical-stage biotech company's stock closed last week at $11.18, then rose to as high as $16.49 on Tuesday. The stock is still down more than 52% this year.
So what
Belite Bio focuses on therapies for eye diseases and metabolic disorders, including diabetes and liver disease. The move up wasn't driven by any particular news, but after the stock hit its 52-week low last Friday at $11 a share, investors looking for a potential bargain with upside piled back in this week.
Belite's lead candidate, tinlarebant, has shown promise in early trials for slowing the progression of Stargardt disease and geographic atrophy in dry age-related advanced macular degeneration (AMD), two of the leading causes of vision impairment.
Stargardt disease is a rare genetic disorder affecting roughly 1 in 10,000 people, according to the National Eye Institute, while the Centers for Disease Control and Prevention estimates that 1.8 million Americans aged 40 years and older are affected by AMD. Tinlarebant, as an oral tablet, is currently in a phase 3 trial across several countries.
Now what
As of the first quarter, Belite Bio reported it had $37.8 million in cash and lost $6.9 million in the quarter. To supplement that cash level, the company did a $30 million stock sale on May 30, which was the main reason for the stock's decline prior to this week. The stock is still well below analysts' consensus price target of $57.
