When two cash burners merge to win a costs and expenses reducing battle long holding buyers usually flock in to observe both companies. Caladrius Biosciences (CLBS) has been struggling for several years to get out of negative EPS territory. Today it is realizing no resources remain to keep the fight. A merger or acquisition is the only way to survive.
Cend Therapeutics may assist CLBS to revive in a “blood bath” where even big healthcare stocks are losing because of inflation and covid-19 vaccine-making competition. Right now CLBS is under $1 for its quite unpromising financial condition and viable candidates to become a long-term revenue source. The current merger may push the stock to a new high level even though resources are scarce in both companies.