Why Is Aytu Stock Dropping?

Aytu Bioscience Inc (AYTU) stock has been dropping since early December 2019, and there is no clear reason why. The company is a commercial-stage biopharmaceutical company focused on global commercialization of novel products in urology and endocrinology, and their lead product is Natesto, which is a testosterone nasally delivered gel. The gel is FDA-approved and is commercialized in the United States, Canada, and Europe.

There was news in December that the company was appointed the exclusive distributor of QuanGuang Lu-AE7, an investigational new drug in China for the treatment of advanced solid tumors, but this doesn't seem to be the reason for the stock drop.

The most likely reason for the stock drop is simply that the market is bearish right now. The S&P 500 is down about 3% since early December, and Aytu Bioscience stock is down about 40% in the same time period. While there is no specific news that has caused the stock to drop, the overall market sentiment is bearish and this is likely the reason for the stock drop.

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It's impossible to say for sure whether the current dip in the stock market is a temporary dip or a sign of long-term trouble. However, there are a few factors that may give us clues as to which it is.

Firstly, stock market dips are not uncommon and are often caused by natural corrections or briefly favourable conditions. For example, the stock market may have been due for a correction after a long bull run. Additionally, short-term economic news such as the US-China trade war, Brexit uncertainty, or the government shutdown may have caused investors to sell off stocks.

However, there are a few factors that suggest that this current dip may be more than just a temporary blip. For one, stock market corrections are typically followed by a rebound. However, the current dip has lasted for several weeks with no sign of a rebound. Additionally, many experts have suggested that the current market conditions resemble those before past major market crashes, such as the 2000 dot-com bubble burst or the 2008 financial crisis.

So, is the current dip a temporary dip or a sign of long-term trouble? Only time will tell for sure. However, the current indications suggest that this may be more than just a brief market correction.

The company's stock price is expected to rise in the short term as the company continues to grow and expand its operations. The company's long-term prospects are positive as well, given its strong financial position and its ability to continue to grow its business.