What happened to Longeveron?

One of the best-performing stocks in the market in recent weeks has been Longeveron (NASDAQ:LGVN). Yesterday , LGVN stock is soaring once again, up nearly 150% at the end of the day. Among speculative biotech stocks, Longeveron continues to outperform the market by a wide margin. Trading at only $3 per share a week ago, shares of LGVN stock have skyrocketed to more than $40 per share yesterday.

So what's behind the huge gain?

An epic short squeeze appears to be underway. Longeveron announced on Nov. 18 that the U.S. Food and Drug Administration (FDA) granted a Rare Pediatric Disease designation to experimental drug Lomecel-B in treating a rare congenital heart defect. Since then, the company's shares have vaulted higher. The big increase was fueled by short-sellers closing their positions.

Riding a short squeeze can result in significant returns very quickly, if you jump aboard early enough. The problem is that these squeezes typically don't last long. When a short squeeze ends, stocks usually fall nearly as rapidly as they rose. Anyone considering buying shares of Longeveron at this point should exercise caution. The stock could soon give up much of its gains from the past few days. It's certainly good news that the FDA granted Rare Pediatric Disease designation to Lomecel-B. This puts Longeveron in a position to potentially receive a priority review voucher. Using a priority review voucher cuts the FDA's review time for an approval filing from 10 months to six months. However, Lomecel-B is still only in phase 2 testing.

And let’s dive into a few things to know.

• Longeveron is a clinical-stage biotech company focused on finding therapies for life-threatening conditions.
• Indeed, the company’s focus on finding regenerative medicine approaches is one investors seem to like.
• The company’s Lomacel-B drug candidate is among the company’s leading prospective drugs.
• However, the company has a pipeline of other drugs investors are growing increasingly bullish on.
• The aforementioned FDA RPD designation appears to have boosted the value of the company’s drug portfolio dramatically.
• The timeline to bring drugs to market is a key determining factor of how biotech stocks are valued.

Accordingly, investors seem like like LGVN stock in the context of these recent announcements.

There are several milestones to look forward to with Longeveron after the short squeeze plays out. The company expects to kick off its phase 2 study evaluating Lomecel-B in Alzheimer's disease and a Japanese aging frailty study by the first quarter of 2022. The company also plans to report results from a phase 1/2 aging frailty study in the first quarter. GLTA!$Longeveron Inc(LGVN)$