Phio Pharmaceuticals Corporation

Phio Pharmaceuticals Corp. (NASDAQ: PHIO) is a clinical-stage biotechnology company. The Company is focused on developing immuno-oncology therapeutics based on its self-delivering ribonucleic acid interface (RNAi) INTASYL therapeutic platform. Its INTASYL compounds are designed to precisely target specific proteins that reduce the body’s ability to fight cancer without the need for specialized formulations or drug delivery systems, and are designed to make immune cells effective in killing tumor cells.

Recent Financial and Business Updates:

• Strategic Advancements in Recent Corporate Initiatives: In a series of recent corporate milestones, the company marked a significant achievement by enrolling the inaugural participant in the Phase 1b clinical trial of its flagship product, PH-762. Moreover, the company unveiled groundbreaking insights into its PH-894 INTASYL compound, directed at BRD4, at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics in Boston. Notably, the company also presented compelling data highlighting the efficacy of the INTASYL compound in targeting CTLA-4, showcasing enhanced control over tumors at the Annual Meeting of the Society for Immunotherapy of Cancer (SITC). 

Financial Prowess: Position and Performance

• Reassessing the Cash Landscape: As of September 30, 2023, the company reported a cash balance of USD 8.4 million, representing a strategic realignment from the USD 11.8 million recorded at December 31, 2022.
• Strategic Cuts and Accelerated Innovations: Research and development expenses underwent a substantial 28% reduction, amounting to USD 1.8 million for the quarter ending September 30, 2023. This decrease was predominantly attributed to the successful completion of the company's IND-enabling preclinical studies for PH-894. However, it was noteworthy that this was somewhat offset by an increase in clinical-related costs for the two U.S. PH-762 Phase 1 clinical trials compared to the corresponding period in the previous year.
• Optimizing Operational Expenditure: General and administrative expenses witnessed a commendable 9% decrease, amounting to USD 1.0 million for the quarter ending September 30, 2023. This reduction was primarily fueled by the judicious reduction in the utilization of business development consultants compared to the corresponding period in the previous year.
• Financial Resilience and Improved Profitability: The net loss for the quarter ending September 30, 2023, saw a significant reduction, amounting to USD 2.8 million, or USD 1.14 per share. This marked a notable decrease from the net loss of USD 3.6 million, or USD 3.14 per share, reported for the quarter ending September 30, 2022. This impressive turnaround was chiefly propelled by strategic adjustments in research and development expenses, as elucidated earlier. 

Technical Observation (on the daily chart)

The Relative Strength Index (RSI) over a 14-day period stands at 77.63, currently in overbought zone, with expectations of some consolidation or a healthy correction before the continuation of the upward momentum. Moreover, the price is currently positioned above both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is December 06, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.