One of the stocks to have come under pressure recently is that of the biopharmaceutical firm Millendo Therapeutics (NASDAQ:MLND) and the rout in the stock continued on Wednesday. Yesterday, the Millendo stock tanked by as much as 17% and it might be a good time for investors to figure out if the decline in the stock could present an opportunity.
Back on Tuesday, it emerged that the Millendo shareholders had given their approval for the company’s merger with Tempest Therapeutics, a clinical stage oncology firm. While it is a major development for Millendo, the development seems to have put off many investors.
The merger transaction is expected to be closed on June 25, 2021 and once it is completed the new entity is going to be known as Tempest Therapeutics. The shares in Tempest Therapeutics will trade under the ticker symbol TPST once trading begins on June 28, 2021.
While the reaction to the news of the merger has not been favourable in the markets, it is still going to be interesting to see if the stock can actually make a recovery once the merged entity starts trading on June 28. In the meantime, it remain to be seen if the Millendo stock declines further over the coming days.
Market Reaction:
On Wednesday, MLND stock slid by 17.40% to $1.14 with more than 5.98 million shares, compared to its average volume of 2.13 million shares. The stock has moved within a range of $1.1100 – 1.2400 after opening the trade at $0.2102. Over the past 52-week, the stock has been trading within a range of $0.9180 – 2.7700.
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