Replimune Group, Inc.

Fundamental analysis
Replimune Group, Inc is an American biotechnology company that develops cancer drugs. The company was founded in 2015 and is headquartered in Wobrun, Massachusetts USA. Wobrun is a suburb of Boston. Replimune was founded to develop cancer drugs. The company has no approved drug as of now and has been loss making throughout its existence. The large owners are investment funds with a focus on biotechnology. This practice is standard in the pharmaceutical industry. If a company takes its drug development to the final stage and a drug is produced, it is usually bought by a pharmaceutical giant. This leads to the mass production of the drug and also to the disbursement of investment funds. The investment funds then have capital to invest in other start-ups and the whole cycle repeats itself. However, not all start-ups will see the development of a drug through to fruition. Replimune has 331 employees. In 2023, the company sold $170 million. In all previous years, the company has only generated a loss, which has increased every year.
Since the firm has no product, it has no sales and therefore no income.
Results
In the week, the company announced new results from its trials of the therapeutic RP1 (Replimune’s main intended “product”). The results proved positive as the share price increased by over 30% in three days.
Technical analysis
Volume is above 500,000 shares per day.
The price has fallen from highs of around $50 per share to today’s $7 per share (just a few days ago the price was around $5 per share). Over the past 52 weeks, the price has ranged from $4.92 to $24.81 per share. So the stock is very volatile.
The moving averages have been in a downtrend since last August. Their spread is now narrowing due to how much the stock has fallen and approached very low levels. A price of around $5 is really low.
The RSI has jumped from low to almost overbought zone in response to the earnings release. So the signal is unclear.
Conclusion
The current price of 5-7 USD per share is a very low price. Any news (positive or negative) will cause a massive rise/fall in price. In absolute numbers the movement will not be big, but in percentage terms it will be.
Biotech companies are susceptible to different news. Successfully bringing a drug to production usually means a multiple of the money invested in the stock. As you can see from historical data, the stock has had a sevenfold increase in share price. Replimune may be an interesting stock for investors who are into biotech stocks. The latest news catapulted the stock up more than 30%.
On the other hand, the economic indicators are trickling in, with the company making bigger and bigger losses. So the share price decline makes sense. Thus, a potential investor needs to watch out for possible strong moves both upwards and downwards.