Brief Summary
The promise of Veru (NASDAQ:VERU) severe COVID-19 therapy is mainly responsible for the meteoric rise in the company’s share price this year.
The stock price of the biotechnology company is going in the opposite direction today as investors flee the market in fear of rising interest rates.
Veru (NASDAQ:VERU)
Veru (NASDAQ:VERU), a high-flying cancer stock and COVID-19 stock, is currently making a significant pullback. As of Tuesday afternoon at 12:38 p.m. Eastern Time, the biotech company’s shares had dropped by a massive 17% on average volume as of that time.
Why are investors pulling their money out of the market at this time? The positive development is that Veru did not publish any significant news today, which means that its value proposition has not unexpectedly shifted. The bad news is that it appears as though investors are engaging in profit-taking throughout the diverse healthcare environment today in reaction to the plans of the Federal Reserve to continue hiking interest rates in 2023. This is the bad news.
Then what?
Veru (NASDAQ:VERU) stock price reached an all-time high early this year, having increased by an astounding 198% from the beginning of the year. This was primarily due to Veru’s severe COVID-19 medication’s enormous commercial potential, known as sabizabulin. Because of this, Veru stands out as a top target for profit-taking, especially in this environment where people are becoming more risk-averse.
In line with the overall trend, most healthcare stocks that were among the best performers in 2022, such as Axsome Therapeutics and Siga Technologies, are also among the worst performers now. When faced with the prospect of further fee increases, investors in the healthcare industry don’t appear eager to take any risks.
What’s Next?
Is this decline in the price of Veru (NASDAQ:VERU) shares by more than ten percent an opportunity to buy? Yes, in my opinion. Sabizabulin has the potential to address a significant shortcoming in the treatment of hospitalized COVID-19 patients. As a consequence, the pharmaceutical product ought to achieve a reasonable degree of sales if the Food and Drug Administration of the United States grants approval for it to be used for this indication. As a result, investors looking for deals may wish to take advantage of the current downturn in the price of Veru’s shares today.
Featured Image : Megapixl © BrunoWeltmann
Author Shariq Khan 
