Applied Genetic Technologies Corporation (NASDAQ: AGTC) was one of the top gainers at the close of the week. It closed the week with gains of 29.73%. The stock was in a breakout after several days of increasing volumes.
Close to three weeks ago, the company released its results for Q1 of 2020 and they were largely positive. The company announced that, it had closed the quarter with a strong balance sheet. In the quarter, the company had total cash and cash equivalents of $71.1 million. It also stated that, these funds were enough to cover the generation of data from its ongoing clinical programs. It further added that, the funds were enough to cover planned research and other programs all the way into Q1 of 2021. On top of that, the company announced that it expects to have cash and cash equivalents of around $30 million to $40 million by the end of June 2020.
However, the company recorded a drop in net profits. It reported a net loss of $11.6 million. In a similar quarter in the 2019 financial year, it had a profit of $1.2 million. The company attributed this loss to a $14 million decline in revenues and a $0.1 million increase in G&A expenses.
On the scientific front, the company announced that, it advanced its strategy to establish a wide pipeline of gene therapy in collaboration with Otonomy. Under this collaboration, the two companies will co-develop and sell AAV-based gene therapy for patients with hearing problems, especially sensorineural hearing loss. This is a type of hearing loss that is caused by a mutation in protein beta 2 gene.
Looking at its price action, the stock is in a breakout after trading at a support level for weeks. It opened the day at $3.06 and traded between $3.05 and $3.99 before closing the day at $3.84. Volumes in the day stood at 1.75 million.
About Applied Genetic Technologies Corporation
Applied Genetic Technologies Corporation is a biotech company that develops genetic therapies for rare diseases. It is headquartered in Alachua, Florida.