Centessa Pharmaceuticals (CNTA) Soars 4.42% on FDA Clearance

Centessa Pharmaceuticals (CNTA) shares surged 4.42% today, marking the second consecutive day of gains, with a total increase of 8.04% over the past two days. The stock price reached its highest level since March 2025, with an intraday gain of 5.06%.

The strategy of buying CNTA shares after they reach a recent high and selling them one week later delivered moderate returns but came with significant volatility and risk. Over the past five years, the strategy achieved a 361.85% return, vastly outperforming the benchmark's 56.99% return, resulting in a 304.86% excess return. However, it came at the cost of high volatility, with a maximum drawdown of -40.91% and a Sharpe ratio of 1.19, indicating substantial risk-adjusted returns.

Centessa Pharmaceuticals' recent stock price movements can be attributed to several key developments. The company announced that the U.S. Food and Drug Administration (FDA) has cleared the Investigational New Drug (IND) application to initiate a Phase 1 clinical study of ORX142. This regulatory progress is a significant milestone that can positively influence investor sentiment and the company's stock price.

Additionally, Medicxi Ventures Management (Jersey) Ltd's substantial investment in Centessa Pharmaceuticals, holding 19.96 million shares as of June 30, 2025, reflects confidence in the company's potential. This investment may further bolster investor optimism and contribute to the upward trend in the stock price.