Open Orphan Share Price Forecast July 2021 – Time to Buy ORPH?
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Shares of Pharmaceutical company Open Orphan (LSE: ORPH) are in the green today on the back of Wednesday’s news concerning the acquisition of a new contract. As the company has increased its revenue by 504% last year amid the pandemic, many investors are wondering whether this is the right time to pick up ORPH shares.
Open Orphan – Technical Analysis
According to the financial statement released by Open Orphan, it has a £169.391 million market cap with total assets worth £48.545 million. Income during the pandemic year was significant for the company, as it earned a revenue of £20.60 million in 2020 compared to just £3.37 million the year before. ORPH shares closed on July 14th at £26 with an uptrend of 2.97%.
The technical information for Open Orphan provides more insight. Moving averages such as Volume Weighted Moving Average (20)(28.94), Simple Moving Average (100)(34.20), Exponential Moving Average (200)(28.83) and Simple Moving Average (200)(29.53) are pointing towards selling. Oscillators for Open Orphan such as Stochastic RSI Fast (3, 3, 14, 14)(48.78), Williams Percent Range (14)(−73.68), Bull Bear Power(−2.55) and Ultimate Oscillator (7, 14, 28)(41.39) are pointing towards a neutral action.
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Recent Developments
As mentioned before, Open Orphan’s office in Breda, Netherlands has won a €900,000 contract for clinical trial management. The company has also recently acquired CHIMagents Limited, which aids companies in the manufacturing, designing and testing of challenge agents used in studies. Another recent news for the company was its Poolbeg Pharma unit which focuses on developing treatments for infectious diseases. The company said that it was preparing to launch a £25 million IPO for it. Chairman Cathal Friel, who co-founded the company has also purchased 1.13 million ordinary shares at an average of 26.50p per share.
Open Pharma’s Poolberg unit has been developing POLB-001 which is a new treatment for influenza, ready for phase II trials. According to the management team, the treatment’s addressable market size is around $800 million.
Should You Buy ORPH Shares?
Investors have to consider certain risks before they pick up ORPH shares. Completing trials for Phase II and III will take a long time with chances of things going wrong. The market currently has 32 competing influenza drugs in Phase II and 16 in Phase III. Thus the level of competition in this market is fierce. Additionally, since there are no other medicines currently in the works for Open Orphan, investors have fewer reasons to get excited for. Investors should wait until further news about the demerger and IPO is announced.
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