If you see Spero (Nasdaq: SPRO) rising 170% now you are definitely late to gain profit on its growth. However, for the next trading sessions, it will most likely enter a normal correction territory by losing around 15%.
Healthcare stocks usually jump on recent news and later come back near initial prices. In the case of SPRO, this scenario is most probably to happen. The company is thanking GSK for choosing its antibiotic for further development and commercialization.
In the drug’s third clinical trial Spero didn’t get approval from FDA as it was insufficient. Fortunately, GSK and Spero have other alternative countries to market the antibiotic.