Diffusion Pharmaceuticals Inc.

Diffusion Pharmaceuticals Inc. (NASDAQ: DFFN) is a biotechnology company in the clinical stage. It aims to improve the efficacy of current standard-of-care treatments, such as radiation therapy and chemotherapy, to increase the life expectancy of cancer patients.

Key Highlights:

• The company has yet to record revenue from operations, and it does not anticipate generating revenue from product sales shortly.
• The net loss in Q3FY21 jumped to USD 12.20 billion from USD 4.44 billion in Q3FY20, owing to a USD 8.64 billion impairment charge on in-process research and development.
• The company is constantly issuing its common stock and warrants, which dilutes existing shareholders' holdings and diminishes their ownership in the company.
• Stock is currently trading below its crucial short-term as well as long-term 50-day and 200-day SMA support levels, a bearish indicator.
• Stock is currently leaning towards the lower end of the 52-week range of USD 0.22 to USD 1.85.
• DFFN's share price has declined 56.12% and 67.83% in the past six and nine months, respectively.

Technical Price Chart (as of January 28, 2022). Analysis by Kalkine

Conclusion: The company has not reported any revenues to date. Given the unstable fundamentals, lack of clarity in top-line growth, and bleak outlook, we recommend an "Avoid" rating on the stock at the closing price of USD 0.2414, down 0.45%, as of January 28, 2022.

*The reference data in this report has been partly sourced from REFINITIV.