Processa Pharmaceuticals (PCSA) Shares Soar 18.21% on Licensing Deal

Processa Pharmaceuticals (PCSA) shares surged 18.21% today, reaching their highest level since January 2025 with an intraday gain of 243.48%. However, the stock also hit its lowest point since April 2025, experiencing an intraday decline of 13.04%.

The strategy of buying PCSA shares after they reached a recent peak and holding for 1 week yielded mixed results over the past 5 years. The annualized return was -14.5%, with a maximum drawdown of 70.4% during the backtested period. This indicates that while there were some rebounds, the overall performance was lackluster, and the strategy was not profitable.

Processa Pharmaceuticals has recently announced a significant licensing agreement with Intact Therapeutics for the drug PCS12852, aimed at treating gastroparesis and other gastrointestinal motility disorders. This agreement includes substantial milestone payments totaling up to $452.5 million, along with double-digit royalties on worldwide net sales of the licensed product and a 3.5% equity stake in Intact Therapeutics. This strategic partnership not only enhances Processa's financial strength but also aligns with its focus on developing next-generation cancer therapies while unlocking the value of its non-oncology assets. The collaboration reflects a shared commitment to advancing PCS12852 towards commercialization, offering a promising therapeutic option for patients with gastrointestinal disorders.