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NeuroDerm Likely Boosted By Short Squeeze Following FDA News

NeuroDerm Likely Boosted By Short Squeeze Following FDA News
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Neuroderm Ltd (NASDAQ: NDRM) shares were soaring higher by more than 27.6 percent on Monday morning on the back of an update release following an October meeting with the FDA. After dipping as low as $15.20 last week, the stock jumped as high as $21.95 on Monday morning before settling back down around $19.80.

The initial surge in Monday morning’s trading may have been driven in part by a short squeeze.

NeuroDerm's Short Squeeze

According to, NeuroDerm currently has a relatively high short percent of float of 10.0 percent.

Monday’s news likely sent many shorts scrambling to cover their positions. The company reported that it intends to pursue a comparative bioavailability path for ND0612 based on comparative pharmokinetic (PK) data rather than data from a Phase III trial.

In addition, the company reported that the FDA will be considering long-term safety data from the company’s BeyoND trial in the New Drug Application (NDA).

Prior to Monday’s news, NeuroDerm short sellers had made a killing on the trade since mid-November. Shares fell from a high of $20.50 to nearly $15 in a matter of weeks. Monday’s opening spike on extremely high volume was likely driven in part by short covering.

Neuroderm currently has 21.6 million shares and more than 758,000 shares held short with 11.1 days to cover.

Posted-In: Biotech Short Ideas FDA Events Movers Trading Ideas General Best of Benzinga


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