Shares of Vallon Pharmaceuticals Inc. skyrocketed 89.0% on massive volume in morning trading Friday after the biopharmaceutical company said it is exploring strategic alternatives, including a possible sale of the company. Trading volume spiked to 82.8 million shares, compared with the full-day average of about 720,000 shares. Vallon’s stock was currently the biggest gainer and most active trading on major U.S. exchanges. The company said it has engaged Ladenburg Thalmann & Co. Inc. to advise on the strategic review process. The stock’s rally comes after it closed at a record low of $1.13 on Thursday. Through Thursday, the stock had plummeted 84.8% since it announced before the March 21 open that a study of ADAIR, Vallon’s “abuse-deterrent formulation of amphetamine for the treatment of attention deficit hyperactivity disorder (ADHD) and narcolepsy,” failed to meet its primary endpoint. On Friday, the company said it was continuing to assess the best path forward for ADAIR. The stock has still tumbled 64.3% year to date, while the iShares Biotechnology ETF has dropped 17.8% and the S&P 500 has shed 8.4%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.