Anixa Biosciences Plummets 24%: What's Behind the Sharp Drop?

Summary
• Anixa Biosciences (ANIX) slumps to $3.63, down 24.375% from $4.80 close
• Intraday range spans $3.52 to $5.10, with $5.00 open
• Phase 1 breast cancer vaccine data triggers sector-wide jitters
• Turnover surges to 1.86M shares, 5.97% of float

Today’s plunge in Anixa Biosciences reflects a collision of clinical trial optimism and sector-wide risk aversion. While the company’s breast cancer vaccine met primary endpoints, broader biotech volatility—driven by Rezolute’s 87% collapse and regulatory uncertainty—amplified the sell-off. Traders are now dissecting technicals and options data to gauge if this is a buying opportunity or a deeper bearish shift.

Phase 1 Trial Success Sparks Unintended Sell-Off
Anixa Biosciences’ 24.375% intraday drop defies conventional logic: the company announced positive Phase 1 data for its breast cancer vaccine, with 74% of participants showing immune responses and no major side effects. However, the market’s reaction was driven by sector-wide caution. The biotech sector, already reeling from Rezolute’s catastrophic phase 3 failure, saw investors flee to cash. ANIX’s low float (5.97% turnover) exacerbated liquidity issues, creating a self-fulfilling price spiral. Despite the trial’s success, investors questioned the vaccine’s commercial viability and regulatory hurdles, triggering a wave of profit-taking and short-covering.

Biotech Sector Volatility Amplifies ANIX's Freefall
The biotech sector’s mixed signals amplified ANIX’s decline. While Eli Lilly’s obesity drug milestone and Moderna’s $500M partnership signaled optimism, Rezolute’s 87% plunge after a phase 3 failure created a toxic environment. Amgen (AMGN), the sector’s top performer, fell 0.35%, reflecting broader risk aversion. ANIX’s speculative profile—lacking near-term revenue catalysts—made it particularly vulnerable. The sector’s average P/E of -10.85x underscores earnings skepticism, with investors prioritizing cash flow over long-term R&D bets.

Bearish Playbook: ANIX Puts and ETF Positioning in Turbulent Times
• 200-day MA: $3.34 (above) | RSI: 57.52 (neutral) | MACD: 0.2197 (bullish) | Bollinger Bands: $3.87 (lower) to $5.23 (upper)
• 30D Support: $4.195–$4.22 | 200D Support: $2.948–$3.0048

ANIX’s technicals suggest a bearish near-term outlook despite long-term bullish patterns. The stock trades near its 52W low ($2.07) and 200D MA, with RSI in neutral territory. Bollinger Bands indicate oversold conditions at the lower band ($3.87), but momentum lacks conviction. Two options stand out:

• ANIX20260417P2.5 (Put, $2.5 strike, 2026-04-17):
- IV: 33.69% (moderate) | Leverage: 734.00% | Delta: -0.0177 | Theta: -0.0001 | Gamma: 0.0599 | Turnover: 0
- High leverage for deep-out-of-the-money bets | Low delta indicates minimal directional sensitivity | High gamma suggests potential for rapid value shifts
- This contract offers speculative upside if ANIX collapses below $2.5, though zero turnover raises liquidity concerns.

• ANIX20260717P2.5 (Put, $2.5 strike, 2026-07-17):
- IV: 26.30% (low) | Leverage: 734.00% | Delta: -0.0173 | Theta: -0.00006 | Gamma: 0.0575 | Turnover: 0
- Lower IV reduces premium erosion | Similar leverage and gamma to April contract | Longer expiration (July) offers more time for bearish move
- Ideal for long-term bearish positioning, but zero turnover limits execution.

Payoff analysis under 5% downside (to $3.45): Both puts expire worthless, highlighting the need for a >30% move to $2.5 for profitability. Given ANIX’s 52W low at $2.07, a 40% drop would trigger meaningful intrinsic value. Aggressive bears may consider these puts if sector-wide regulatory risks escalate.

Backtest Anixa Biosciences Stock Performance
The ANIX ETF has experienced a significant intraday plunge of -24% from 2022 to the present date. However, the backtest results show a positive performance in the following days, with a 3-day win rate of 52.93%, a 10-day win rate of 53.54%, and a 30-day win rate of 55.96%. This indicates that while the ETF may have experienced a sharp decline, it has shown resilience in the short term, with returns of 1.12% over 3 days, 2.19% over 10 days, and 5.03% over 30 days. The maximum return during the backtest period was 10.29%, which occurred on day 59, suggesting that while the ETF may bounce back from a significant drop, the recovery may take some time.

Sector-Wide Biotech Downturn: Time to Ride the Bear or Wait for Bounce?
Anixa Biosciences’ 24.375% plunge reflects sector-wide biotech fragility, not isolated weakness. While technicals suggest oversold conditions, the stock’s proximity to 52W lows and 200D MA raises caution. Sector leader Amgen’s -0.35% move signals broader risk aversion. Investors should monitor FDA regulatory shifts and sector-specific catalysts—like Lilly’s obesity drug commercialization or Rezolute’s follow-up data. For now, ANIX’s options chain offers speculative bearish exposure, but liquidity constraints demand caution. Watch for a breakdown below $3.0048 support or a sector rebound above AMGN’s -0.35% threshold.