The psychedelics based medicine industry may still be at a nascent stage but there is already a considerable degree of excitement about the possibilities of the industry.
Hence, it came as no surprise that pharmaceutical company Enveric Biosciences (NASDAQ:ENVB) decided to move into that space recently. Although there has been no news about the company lately, the stock has been on a rally over the past week and has rallied by as much as 27% amidst heavy interest. The interest in the stock might have been driven by its acquisition of the psychedelics compound company MagicMed back on May 31.
This is a key acquisition for the company, which is primarily involved in the development of pharmaceuticals derived from CBD for the purpose of treating cancer. While the latest development is interesting, it is also necessary for investors to note that the company runs at a net loss and the income that it generates is primarily by way of direct offerings.
The recent rally in the Enveric stock has come as a welcome break for its investors considering the fact that the stock had been in the middle of a downward spiral since December last year. It remains to be seen if the stock can continue to hold on to its momentum in the coming days.
Market Reaction:
On Monday, ENVB stock gained 10% to $2.60 with more than 6.10 million shares, compared to its average volume of 1.57 million shares. The stock has moved within a range of $2.2127 – 2.6000 after opening the trade at $2.37 Over the past 52-week, the stock has been trading within a range of $1.4800 – 15.0400.
 Stock Soars 27% in a Week: Will it Sustain?){kind=link}