Investors in the biopharma space have seen some outsized volatility of late. For investors in Clearside Biomedical (NASDAQ:CLSD) and CLSD stock, the good news is that most of this volatility has been to the upside. Currently, CLSD stock is up more than 45% on extremely heavy volume.
Clearside is a biopharmaceutical company focused on developing and commercializing treatments for those with various eye diseases. The company’s portfolio has provided intriguing long-term growth opportunities to investors. Indeed, over the past year, this stock has more than doubled, driven by news of its drug candidates.
Today, Clearside’s rise appears to be indicative of growing optimistic sentiment surrounding this pipeline. Let’s dive into a recent company announcement, and why investors are piling into CLSD stock.
Positive Safety Results Boosting CLSD Stock Today
As a clinical-stage biopharma player, announcements of positive test results can have an outsized effect on a company’s valuation. Indeed, the fact that CLSD stock is now up nearly 50% today on the announced positive safety results for a Phase 1/2a clinical trial of one of its prospective drugs is indicative of this reality.
The company announced today that its CLS-AX (Axitinib injectable suspension) treatment posted some positive initial results. No adverse events were observed through the study period. Additionally, the company announced the trial will advance to Cohort 2. This study is expected to be completed by the end of the year.
Such results are bullish for investors considering CLSD stock today. Indeed, the age-related macular degeneration market is a significant growth area biopharma investors are focused on right now. Shifts in population demographics continue to drive more patients to seek therapies to deal with degenerative disorders. Accordingly, Clearside’s potential in this growth market appears to be much stronger after this news.
That said, as with all clinical-stage firms, investors should practice prudent risk management and position sizing. Indeed, these stocks tend to be higher-volatility picks. Thus, holding a basket of well-diversified names is a great way to manage one’s risk in today’s market.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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