Shares GlycoMimetics Inc (NASDAQ:GLYC) are spiraling, after the biotech said the main objective of a late-stage trial for its acute myeloid leukemia is overall survival -- disappointing investors who believed the remission rate was the main goal, according to Stifel. The company also reported a fourth-quarter loss, and at last check, the pharma stock was down 21.7% to trade at $17.87 -- gapping below its 50-day moving average for the first time since mid-November.
Even with today's bear gap, GLYC has had a great year, picking up roughly 176% over the past 12 months -- thanks in part to last May's bull gap, sparked by a big regulatory win for the drugmaker. More recently, the shares touched a record high of $26.05 on Feb. 15.
Against this backdrop, analysts have been optimistic, with all five following the stock carrying "strong buy" recommendations. Echoing this, the stock's current 12-month price-target stands at $27 -- representing expected upside of 51% to current levels.
Short sellers, on the other hand, were bracing for a retreat. Short interest rose nearly 3% over the past two reporting periods, and now represents 17.5% of GLYC's total available float. However, GlycoMimetics stock is on the short-sale restricted list due to this morning's sharp losses, sparking accelerated demand for put options. Amid relatively low absolute volume, GLYC put volume has surged to 65 times what's typically seen at this point in the day.