Berkeley Lights Responded to a Short Sell Report and Protagonist Therapeutics Received Bad Test Results
Berkeley Lights is a biotechnology business located in Oakland, California, a bordering city of San Francisco. They focus on cell biology, and they have a market cap of $1.819 billion, making them a mid-cap company.
On September 15th, short selling firm Scorpion Capital released a report saying that they heard from Berkley’s customers that they were misled into buying into one of their platforms, and that this platform is fraudulent. This sent the stock price down nearly 30 percent in two days, but Berkley responded on Friday by saying that Scorpion never reached out to them about this and that the claims were false. They also filed a report with the SEC denying these allegations, and it instilled trust as the stock closed the day at $27.11, up 15.21%
Protagonist Therapeutics is another biotech firm, and they are in the same area too, except Protagonist is a bit further south. They mainly focus on finding cures for unmet diseases, and they are a smaller company with a market cap of $833.562 million.
On Friday, results were released regarding Protagonist’s drug, Rusfertide, which is supposed to help patients with blood diseases. These results weren’t great at all as mice who received the drug developed tumours under their skin. This led to the FDA halting the testing of the drug on humans, and it hurts the company even more as the drug accounts for most of their stock price; if that gets taken away, the company is screwed. Investors noticed this as the stock fell to $17.53, down 62%.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.