ACXP irrational dumpOn November 20, 2024, Acurx pharmaceuticals announced that it approved the conversion of a portion of its cash reserves into Bitcoin, up to a maximum of $1 million.
Immediately, the stock plunged, reflecting shareholder disapproval of this decision. Since then, Acurx has lost around 58% of its value.
To me, this reaction is disproportionate for several reasons:
- In its field of expertise, the search for new antibiotics, Acurx is well positioned. Its flagship product, ibezapolstat, is set to enter phase 3 next year, following encouraging phase 2 studies. These demonstrated, in 32 patients, non-inferiority of the compound compared with vancomycin in Clostridium difficile infection.
- The company has not diluted its shareholders since it decided to invest in Bitcoin.
- Antibiotic resistance is a major issue worldwide. Conclusive Phase 3 results would make ibezapolstat a must-have product worldwide.
- The company is currently valued at just $15 million.
- The Bitcoin price is quietly holding above $90k, with the potential to rise with the arrival of Trump in the White House.
Technically, ACXP seems to have found support at $0.72, with a double bottom that will be confirmed after a clear break of the $1 mark.
Next results will be announced on March 13, 2025. Will the market realize that the stock is mispriced? Only time will tell.
TL;DR: ACXP falls on non-news. Investors will probably realize the mistake when the next results are announced on March 13, 2025. I'm buying here.
Disclaimer: Biotech investments are always extremely risky. This is not investment advice. Always do your own research. Manage your risk accordingly.
