Reviva Pharmaceuticals Holdings Inc

Reviva Pharmaceuticals Holdings, Inc. (NASDAQ: RVPH) is a clinical-stage biopharmaceutical company. The Company discovers, develops, and seeks to commercialize therapeutics for diseases representing unmet medical needs. The Company’s pipeline focuses on the central nervous system, respiratory and metabolic diseases. Its pipeline includes two drug candidates, RP5063 (brilaroxazine) and RP1208.

Recent Financial and Business Updates:

• Corporate Milestones:
  • Inclusion in Russell Microcap® Index: RVPH became a part of the Russell Microcap® Index, ensuring its incorporation into relevant growth and value style indexes in June 2023.
  • Positive Preclinical Data for Brilaroxazine: Encouraging preclinical data regarding brilaroxazine's efficacy in idiopathic pulmonary fibrosis (IPF) were unveiled during the 2023 American Thoracic Society (ATS) International Conference. These findings were subsequently published in Medical Research Archives in May 2023.
  • Presentation of Clinical Pharmacology and Safety Data: RVPH shared promising clinical pharmacology and safety data concerning brilaroxazine at the American Society for Pharmacology and Experimental Therapeutics (ASPET) 2023 annual meeting in May 2023.
  • Exploring Psoriasis Potential: RVPH explored the potential of the liposomal-gel formulation of brilaroxazine in treating psoriasis at the International Societies for Investigative Dermatology (ISID) Meeting in May 2023.
  • Key Opinion Leader Webinar: The company organized a webinar featuring Larry Ereshefsky, PharmD from Follow the Molecule LLC, discussing the potential of brilaroxazine for schizophrenia treatment in May 2023.
  • Preclinical Data Presentation: Foundational preclinical data concerning brilaroxazine's impact in schizophrenia were presented at the 78th Annual Scientific Convention of the Society of Biological Psychiatry (SOBP) and subsequently published in Medical Research Archives in May 2023.

• Clinical Program Progress:
• RECOVER Trial Advancement: Enrollment for the pivotal Phase 3 RECOVER trial, evaluating brilaroxazine's effectiveness in treating schizophrenia, is nearing completion across multiple sites in the US, Europe, and Asia. Over 50% of enrolled patients are also participating in the 1-year open-label extension (OLE) study.
• Anticipated Milestones:
  • Topline Data for Pivotal Phase 3 RECOVER Trial: Expected to be revealed in October 2023.
  • Initiation of Phase 2a Studies: Studies for bipolar disorder, major depressive disorder, and attention deficit hyperactivity disorder are set to begin in the second half of 2023, subject to additional financing.
  • Completion of OLE Study: Expected in Q3 2024, after the required 100 patients have been treated with brilaroxazine for 1 year.
  • IND Application Submission: Planned for 2024 for the liposomal-gel formulation of brilaroxazine in psoriasis.
  • Exploration of Partnerships and Financing: RVPH aims to explore partnerships for pipeline development and evaluate non-dilutive financing opportunities from Healthcare Agencies and Foundations.
    

• Second Quarter 2023 Financial Overview
  • RVPH reported a net loss of approximately 12.4 million USD, equivalent to (USD 0.55) per share, for the three months ending June 30, 2023. This compares to a net loss of around 5.3 million USD, or (USD 0.29) per share, during the same period in 2022. The increased net loss primarily resulted from higher research and development expenses of about 4.5 million USD and general and administrative expenses up by approximately 2.1 million USD for the three months ending June 30, 2023.
  • As of June 30, 2023, the company held approximately 11.2 million USD in cash, compared to roughly 18.5 million USD as of December 31, 2022.
  • Based on the current operating plan and financial reserves, RVPH expects its cash resources as of June 30, 2023, to be sufficient to support ongoing operations well into the fourth quarter of 2023.
    

Technical Observation (on the daily chart)

The price of RVPH stock has shown a consistent downward trend since making its 52-week high on May 04, 2023, with a correction of approximately 46.18%. The RSI (14 period) momentum indicator is in an uptrend with currently at a value of 57.25, with expectations of some consolidation. Moreover, the price is currently positioned between both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support and resistance levels respectively.­­­

As per the above-mentioned price action, key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to Reviva Pharmaceuticals Holdings, Inc. (NASDAQ: RVPH) at the current market price of USD 4.90 as of August 24, 2023, at 06:50 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

How to Read the Charts?

The Yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 24, 2023. The reference data in this report has been partly sourced from REFINITIV.

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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