Tuesday’s Biggest Gainers; Akero, NeuroBo, & Aehr Test Systems
Akero announced positive data for its NASH treatment
Akero Therapeutics Inc (NASDAQ: AKRO) gained 136.76% after announcing that its investigational lead drug had attained its primary endpoint of mid-stage study evaluation as a medication for a fatty liver disease currently without any approved treatment in the market. In addition, the company reported positive data that will be replicated in later-stage studies for approval. Both efruxifermin doses being evaluated demonstrated meaningful differences in individuals with pre-cirrhotic non-alcoholic steatohepatitis (NASH) after 24 weeks relative to the placebo cohort. Akero is currently in discussions with the European and US regulators regarding a large later-stage trial to commence in 2023 after the completion of a trial design.
The company announced a $175 million underwritten public offering for its common shares in other development. Akero is offering all the shares in the underwritten offering. In addition, underwriters will have a 30-day option to buy another $26.25 million worth of common shares at the offering price minus commissions and discounts.
NeuroBo announces reverse stock split
NeuroBo Pharmaceuticals Inc (NASDAQ: NRBO) stock jumped 79.32% after announcing a reverse stock split. The clinical-stage biotech firm announced a 1-for-30 reverse common stock split, with a par value of $0.001. The stock began trading on a split-adjusted basis on the Nasdaq Capital Markets on Tuesday, September 13, 2022. Stockholders approved the proposal to amend NeuroBo’s Certificate of Incorporation, effecting a reverse stock split during the annual shareholder meeting held on June 9, 2022.
The shareholders approved the split of outstanding common shares at a ratio between 1-for-5 and 1-for-35. Notably, the split will combine, convert and change 5 to 35 outstanding shares into one common share. The move seeks to help the company meet the continued listing requirements on the Nasdaq Capital Market. In addition, after completing the reverse stock split, the company’s issuable and outstanding common shares will reduce upon conversion of warrants and stock options in proportion to the reverse split ratio.
Aehr receives an order for its test solution for silicon carbide devices
Aehr Test Systems (NASDAQ: AEHR) shares jumped 13.48% on Tuesday after bagging a new order from a client. The chip fab equipment manufacturer received a new order to be employed for qualification of its silicon carbide devices’ wafer-level burn-in solution for electric cars and other segments. Notably, the company noted that the client was a leading supplier in the EV sector. However, the deal’s financial terms were not revealed, but investors are optimistic that the company’s shares will continue rising.
With demand in the EV market rising, the future for Aehr seems to be bright because the number of chips required per car will grow exponentially. Most importantly, the silicon that goes into an electric vehicle is crucial, but a failure might lead to substantially expensive repairs. The company’s test equipment is vital in ensuring electronics incorporated into electric cars are up to the demanding and long journey ahead.