Clinuvel Pharmaceuticals Limited (ASX: CUV) shares are falling today despite, or possibly because of, the latest strategic update by the pharmaceutical company. At the time of writing, the Clinuvel share price is trading at $29.37 – down 2.49%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.35% lower.
Let's take a closer look at today's news.
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What is Clinuvel?
Clinuvel is a global biopharmaceutical company that develops drugs for the treatment of a range of skin disorders. The company's signature medication is Scenesse.
The drug is for the treatment of erythropoietic protoporphyria (EPP). EPP is a rare metabolic disorder that causes burns after brief exposure to visible light, especially sunlight.
Clinuvel strategic update
The Clinuvel share price is slumping today despite the company providing investors with a second update on its expansion and growth plans. Clinuvel's first update was in October 2020, and it plans to release a new update every six months.
Managing director Philippe Wolgen says the bi-annual updates are important for owners in the company.
"The Strategic Update series additionally aims to inform about the Company's opportunities, and this new format allows us to be more detailed on technology and selected markets," Mr Wolgen said in the statement.
Below is a summary of the updates provided by Clinuvel.
- 40 American skin specialty centres will now treat EPP patients with Scenesse.
- The company is looking to expand the use of Scenesse to "genetic, metabolic, and life-threatening disorders," along with skin treatments.
- Clinuvel will begin treating "several untreated and unserved groups at the highest risk of photodamage and skin cancers," using Scenesse, as soon as COVID restrictions allow.
- A trial for Arterial Ischaemic Stroke is underway, with 80 patients being screened in Melbourne.
- Four new products are in development, with scant detail provided.
- The communications and marketing teams are "80% recruited."
- A new manufacturing division will focus on the development of "innovative, controlled-release systemic and topical formulations.
Investors seemingly are not impressed by these updates, with the Clinuvel share price haemorrhaging after their release.
Only three weeks ago, the company announced it would be expanding its DNA repair program. That announcement was also met with a stock sell-off.
Clinuvel share price snapshot
Despite today's setback, the Clinuvel share price is still around 42% higher than this time last year. In fact, just in the past month, the company's value has appreciated by around 16% with Clinuvel shares hitting a 52-week record of $30.61 last Friday.
Clinuvel has a market capitalisation of $1.5 billion.
