Capricor Therapeutics shares surged over 67% after hours despite reporting a larger-than-expected Q2 loss and no revenue. The significant price movement appears to be driven by an update on their Deramiocel Biologics License Application with the FDA, with an update expected shortly, and high short interest.
Capricor Therapeutics experienced a massive after-hours surge of over 67% despite reporting a Q2 loss of $0.70 per share, missing analyst estimates, and no revenue. The primary catalyst appears to be the ongoing FDA review of their Deramiocel Biologics License Application, with the company expecting an update shortly. This news, coupled with a high short interest of 30.5%, likely triggered a short squeeze, leading to the dramatic price increase. While the financial results were negative, the market is clearly reacting to potential regulatory approval, which could be a significant long-term positive for the company, overshadowing the short-term financial performance. Traders are likely speculating on the outcome of the FDA review, creating both opportunity and risk.