Healthcare company Fresh Tracks Therapeutics (NASDAQ:FRTX) has some good news for those suffering from eczema. At least, it might turn out that way at some point. For right now, the news is positive, but investors are definitely not feeling it. Fresh Tracks was down in Wednesday afternoon’s trading.
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Fresh Tracks delivered a very important piece of good news, noting that its potential eczema drug—otherwise known as FRTX-02—delivered on all the key goals of a phase 1 study. That’s good news by itself and suggests that Fresh Tracks will be able to move on to further testing. FRTX-02 managed to deliver solid results with little in the way of side effects or adverse conditions.
However, what may have rubbed investors the wrong way sufficiently to send the stock plummeting was a new plan to pursue other strategic assets. Fresh Tracks recently turned to MTS Health Partners for advice on setting up new options for the company. It may be something as simple as a licensing deal, but it could potentially mean an outright sale of the company. Considering that Fresh Tracks has only really existed since September—it was Brickell Biotech back then—that might be unnerving investors to the point of abandoning the stock.
The past five trading days for FRTX stock shows a huge spike on Wednesday. However, all the gains were promptly lost as the day went on, and shares are now down 4.87% over the last five days despite a massive upward swing that nearly doubled share prices at one point.
