RADX Plunges 42% Intraday: What's Behind the Sudden Drop?

Summary
• Radiopharm (RADX) reports 92% concordance in Phase 2b trial for RAD 101
• Webinar scheduled for Dec 15-16 to discuss interim results
• Stock trades at $6.15, down 42% from previous close of $10.63

Radiopharm Theranostics (RADX) is experiencing a dramatic intraday selloff, trading at $6.15 as of 2:50 PM EST—42% below its previous close. The stock’s sharp decline follows mixed analyst reactions to its recent clinical trial updates and a broader market reassessment of biotech valuations. With a 52-week high of $16.25 and a dynamic PE of -2.01, investors are scrambling to decipher whether this represents a buying opportunity or a warning sign.

Clinical Optimism Clashes with Market Realism
RADX’s 42% intraday drop reflects a collision between bullish clinical data and bearish market sentiment. While the company announced 92% concordance in its Phase 2b trial for RAD 101—a potential $500M imaging agent for brain metastases—analysts at B. Riley reduced their price target from $15 to $13, signaling caution. The stock’s collapse from $10.63 to $6.15 suggests investors are pricing in execution risks, including the need for larger trials and regulatory hurdles. Additionally, the stock’s 86.86 RSI reading (overbought territory) and a MACD histogram of 0.424 indicate a technical correction after a prior rally.

Biotech Sector Mixed as AMGN Holds Steady
The broader biotech sector remains fragmented, with Amgen (AMGN) down 0.07% despite its $230B market cap. While RADX’s clinical progress is notable, its -2.01 dynamic PE and 15.49% turnover rate highlight its speculative nature compared to sector leaders. The lack of a clear correlation between RADX’s drop and sector trends underscores its idiosyncratic risks, including its reliance on a single pipeline asset and limited commercial revenue.

Navigating Volatility: ETFs and Technicals in Focus
• 200-day average: 5.11 (below current price)
• RSI: 86.86 (overbought)
• Bollinger Bands: Price near lower band at $2.01
• MACD: 0.294 (bullish), Signal Line: -0.130 (bearish)

RADX’s technical profile suggests a short-term rebound is possible but remains highly volatile. Key support levels at $4.49 (30D) and $4.11 (200D) could trigger further declines if breached. Given the absence of options liquidity, traders should focus on ETFs like XLV (healthcare) or XBI (biotech) for sector exposure. A 5% downside scenario (to $5.84) would test critical support, but the stock’s 15.49% turnover rate indicates sufficient liquidity for aggressive positioning.

Backtest Radiopharm Stock Performance
The RADX ETF has experienced a significant intraday plunge of -42% at some point during 2022. However, even after such a dramatic decline, it has shown positive short-to-medium-term performance. The 3-Day win rate is 54.55%, the 10-Day win rate is 50.41%, and the 30-Day win rate is 53.72%, indicating a higher probability of positive returns in the immediate aftermath of the plunge. The maximum return during the backtest period was 11.84%, which occurred on day 55, suggesting that the ETF has the potential for recovery and even surpassing its pre-plunge levels.

Act Now: Ride the Rebound or Cut Losses?
RADX’s 42% intraday drop creates a high-risk, high-reward scenario. While the 92% concordance in its Phase 2b trial validates RAD 101’s potential, the stock’s technical overbought condition and weak sector positioning demand caution. Watch for a rebound above $6.39 (intraday high) or a breakdown below $5.84 (intraday low). For context, sector leader Amgen (AMGN) is down 0.07%, signaling a neutral-to-bearish environment. Aggressive bulls may consider a bounce above $6.39 as a potential entry, but risk management remains critical. Action: Monitor $6.39 resistance and AMGN’s performance for directional clues.