What's Going On With Axcella Health Stock This Week?

Axcella Health Inc AXLA shares are trading lower Wednesday. The stock appears to be pulling back after soaring nearly 300% Tuesday on a patent announcement for long COVID fatigue treatment.

What Happened: The U.S. Patent and Trademark Office (USPTO) granted Axcella a patent this week covering methods of use of AXA1125 for treating a subject having post-acute sequelae of COVID-19 (long COVID), particularly fatigue.

AXA1125 is a novel composition of endogenous metabolic modulators designed to simultaneously support metabolic, inflammatory and fibrotic pathways associated with fatigue. The patent was issued Tuesday and has an expected expiration in 2042. 

"We are pleased to have this additional designation as we pursue options to bring our investigational product forward for the benefit of the millions of people who continue to suffer from Long COVID Fatigue," said Bill Hinshaw, president and CEO of Axcella.

Following the announcement, shares nearly quadrupled. The stock closed Tuesday up 298.9% at 45 cents. However, the stock is still down more than 81% over a one-year period. 

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AXLA Price Action: Axcella shares were down 11.6% at 40 cents at the time of publication, according to Benzinga Pro.

Photo: Pexels from Pixabay.