Why Purple Biotech (PPBT) Stock Is Getting Hammered

Purple Biotech Ltd – ADR (NASDAQ:PPBT) shares are trading lower by 27.7% to $6.02 during Tuesday’s session after the company announced a $2.8 million offering of 472,688 ADS.

The stock is also pulling back after the company’s Phase 2 trial of CM24 combined with nivolumab and standard chemotherapy for metastatic pancreatic cancer showed significantly improved survival, response rates and biomarker reductions compared to standard care, with a favorable safety profile.

What Else: Purple Biotech entered a definitive agreement to sell 472,668 American Depositary Shares (ADSs) at $6.00 per ADS in a registered direct offering. The offering, led by H.C. Wainwright & Co., is expected to close on December 4, subject to customary conditions.

The company anticipates gross proceeds of approximately $2.8 million, which will support the development of its oncology therapies and general corporate needs. Purple Biotech says the company is meanwhile focused on innovative treatments addressing tumor immune evasion and drug resistance.

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Should I Sell My PPBT Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Purple Biotech have decreased by 60.75% in the past year. An investor who bought shares of Purple Biotech at the beginning of the year would take a loss of $7.01 per share if they sold it today. The stock has risen 182.83% over the past month, meaning an investor who bought shares on Nov. 1 would see a capital gain of $5.43.

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PPBT has a 52-week high of $23.20 and a 52-week low of $2.00.