If there was good data and FDA allowed them to market their drug, I guess shares would increase significantly, because it would be the first drug for inner ear applications on the planet.Really depends what share price we end up at right before data drop. I think it's reasonable that we could double up overnight to anywhere from $10 to $20 on good data. If FX-322 proves efficacy, it revalidates their entire platform and it's game on from there. If FX-345 also comes back with positive data 6 months later, then we may start seeing that $40-$50+ range. Or I could be completely wrong and Phase 2b data comes back negative and we fall back down below $1.
The share price has no effect on the outcome of their trials and has been pretty disconnected from the underlying fundamentals of the company. It only affects their ability to raise capital in the future to keep the company funded. At $1, the company was being valued at 1/3 of their cash pile which was near bankruptcy levels yet the company had and still has enough funding to see 3 more trial results before they run out of cash.
It would be a proof of concept for their platform.
But I have no clue what price it would reach.
If it was a widely applicable drug, I would see a bright future for Frequency Therapeutics. But as we learned, there is also a big chance that the drug might fail.