On another low-volume day heading into Thanksgiving, investors have something to be thankful for. There’s green on the screen in most sectors, with stocks staging a nice rally. However, certain stocks are particularly outperforming, with Palisade Bio (NASDAQ:PALI) being among the biggest winners. At the time of this writing, PALI stock is surging more than 100% in impressive fashion.
Any time a biotech stock like Palisade surges in this sort of way, there’s some news to discuss. That’s certainly the case today. Specifically, the company just received a fast track designation from the U.S. Food and Drug Administration (FDA) for its LB1148 drug.
This drug is aimed at accelerating the timeline for patients to return to normal bowel functions post-surgery. Additionally, the drug has the potential to reduce abdominal adhesions. Thus, for those bullish on the growth in surgical-related drugs, Palisade Bio is garnering significant interest today.
Let’s dive into what this news means for investors and PALI stock.
Is Now the Time to Buy PALI Stock?
Any sort of early-stage biopharma company like Palisade is a high-risk bet. Many such companies don’t receive ultimate approvals for their prospective drugs. Thus, these stocks can be viewed largely as binary outcomes on a few initial bets.
Accordingly, Palisade’s fast track designation sets the stage for the company to study its drug in an expedited fashion — and potentially bringing the drug to market sooner. After all, any sort of indication of interest from the FDA is a positive when it comes time for approval. And while there is still work to be done, it’s clear that the unmet need for effective therapeutic post-surgical drugs like LB1148 is a bullish catalyst for PALI stock as well.
Palisade plans to continue to work with the FDA to develop a plan to push this drug forward for an Accelerated Approval and Priority Review. Eligibility will be determined at a later date. However, there’s good reason why investors are getting excited about this stock today.
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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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