Why Alaunos Therapeutics Stock Is Tumbling Today

What happened

Alaunos Therapeutics (TCRT -7.84%), a clinical-stage T-cell receptor (TCR) therapy company, is in retreat mode. Specifically, the biotech’s share price fell by as much as 10.1% during Monday’s trading session.

Shares have recovered to some degree since, but this small-cap biotech stock was still lower by a hefty 8.58% as of 3:48 p.m. ET. 

So what

What’s weighing on Alaunos’ shares today? Alaunos’ stock roared higher last week by a whopping 64.4%, thanks to an upcoming medical conference presentation titled “Objective clinical response by KRAS mutation-specific TCR-T cell therapy in previously treated advanced Non-small cell lung cancer.”

Day traders that rode this wave higher last week thus appear to be in profit-taking mode today. After all, U.S. stocks in general have come under renewed pressure in recent days following the Federal Reserve’s decision to continue raising interest rates for the foreseeable future.   

Now what

Is Alaunos’ pullback today a buying opportunity? It all depends on your comfort with risk and your investing horizon. The bottom line is that Alaunos will likely take a few more years to realize its full value proposition.

In the meantime, the company will have to continue to make progress in the clinic with its novel TCR platform, which is a lengthy and risky endeavor. So, in short, investors probably shouldn’t buy this clinical-stage biotech stock unless they are willing to hold for an extended period of time.

On the bright side, Alaunos does appear to be attractively valued at current levels for patient investors. Speaking to this point, the biotech’s present market cap of $529 million is a mere fraction of the commercial opportunity of its broad anti-cancer pipeline.

George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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