Biotech stocks like Renovaro Biosciences (NASDAQ:RENB) can be extremely volatile. It helps, though, that there are really only a few core conditions that will make such volatility happen. When they hit, though, watch out; the sky is the limit. A merger is one of these conditions, as Renovaro demonstrated when it announced a new merger with GEDi Cube International Limited. The announcement was enough to send Renovaro up over 64% at one point in Wednesday’s trading.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Renovaro—formerly known as Enochian Biosciences Inc.—focuses on cancer treatments. Specifically treatments designed to target solid tumors using gene therapies, immunotherapy, and cell therapy candidates. A good start on its own, but the new merger with GEDi Cube means that Renovaro will also be able to bring in a range of new solutions, as GEDi Cube is a health AI stock.With the new merger, Renovaro expects that it can improve its future trials and also speed up its time-to-market picture on new treatments as well.
Having an AI company involved should certainly help; with the possibility that Renovaro can stage at least some preliminary testing via simulation, that should allow it to better structure its live testing in the real world. It can pursue further technologies from there, including treatments for new kinds of cancers and better treatments for the therapy options it has now. Considering the goal here is to treat cancer, the end result should be an improvement in public opinion, which should get more investors involved and help Renovaro develop its full potential.
A look at the last five days in trading for Renovaro shows what a huge help this news was. For most of the last five days, Renovaro shares were largely flat, with truly minor adjustments up and down in share price the whole time. At least, that was the case until the merger news landed. Shares briefly shot up more than twice their levels from last week, and then lost almost half of their overall gains today until returning to that more familiar pattern.
