Novan Soars 60% On 209 Million Shares

Biotech stocks tend to rise the most as the race for creating COVID-19 becomes fierce while governments invest billions in the healthcare field. However, Novan (NASDAQ: NOVN) jumps suddenly not because of positive news regarding COVID-19. The biotech company has other goals in treating patients with serious diseases.

From mid-March, NOVN has been surging steadily together with biotech companies like Moderna, Vaxart, Pfizer, Ibio, AbbVie, Gilead, Novavax, Regeneron and many more. Most of these stocks jumped so high as their negative earnings do not distract anyone’s attention in buying shares in masses.

Despite having net losses throughout several years Novan manages to keep investors in the close distance by making some breakthroughs in biotech, meaning that cash burning strategy actually works as long as investors receive good results from the research and development unit.