11 months ago
Chinese Biotech Firm's Stock Surges 4,500% Despite Zero Revenue
Imagine a company that makes medicine.
This company, TransThera Sciences, recently started selling shares of its company on the stock market.
Even though it hasn't made any money yet because its medicine isn't finished, the price of its shares has jumped way up.
This is a bit strange, as the stock price increased by 4,500% since its debut.
This rapid increase in stock value may not be sustainable.
The company has no commercialized products yet.
Some experts think investors are excited about the *idea* of the company succeeding.
The rise has caused some concern.
TransThera Sciences' stock has increased 4,500% since its market debut.
The company's IPO price was HK$13.15; current price is HK$679.5.
The company reported zero revenue for the most recent quarter.
The company's drugs are still in clinical testing with none commercialised yet.
Analysts believe sentiment, not fundamentals, is driving the stock's rise.
- Who
- TransThera Sciences, a Chinese biotechnology company
- What
- The company's stock surged 4,500% since its debut, despite having no revenue.
- Where
- China
- When
- The stock surge occurred in the three months following its stock market debut, and as of September 16.
- Why
- Investors are piling into the Chinese biotech push, possibly chasing the 'next big breakthrough.'
Key facts
- Company
- TransThera Sciences
- Stock Debut
- Late June
- Initial IPO Price
- HK$13.15
- Current Stock Price
- HK$679.5 (September 16)
- Revenue
- Zero (Q2)
- Employees
- 121
- Market Capitalisation
- Surpassed industry leaders (Akeso, Innovent Biologics)
Quotes
TransThera Sciences
The company that saw its stock surge
“business operations remain normal.”
CNBC TV 18
“unusual move”
CNBC TV 18
