Prometheus Biosciences is an innovative biotech firm aiming to develop novel therapeutic and companion diagnostic product candidates for the treatment of immune-mediated diseases.
Prometheus ($RXDX on NASDAQ) had its IPO on March 12, 2021, at $25 per share. $RXDX has a market cap of $2.01Billion and generates $3.13Million in revenue annually. On Wednesday, the 7th of December, the company released a result of treatment in the development for ulcerative colitis (UC) and Crohn’s disease (CD). The result from this study showed it was effective as a treatment and safe for use.
On the 6th of December, $RXDX closed at $35.32 per share. By the opening of the following trading day, there was a gap up as a result of the release of the aforementioned report. This gap up made price open at $105.20 which was over 200% appreciation of the stock as of the time price opened on the 7th of December.
That same day, price kept rallying to about $112 before it reversed. At the end of the trading day, price closed at $95.80. We might be seeing a price fall to $64 in the coming weeks. In September, RSI indicated price was overbought on the weekly time frame. Right now, RSI is also indicating on the weekly time frame that price is overbought due to this recent rally.
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