Alright, folks, let’s talk about a stock that’s lighting up the market today—Beyond Air, Inc. (NASDAQ: XAIR). As of this writing, this biotech is making waves, with its share price rocketing up nearly 100% in early trading. Why the fireworks? The big news dropped this morning: the FDA just handed an Orphan Drug Designation (ODD) to NeuroNOS, a subsidiary of Beyond Air, for their lead therapy, BA-101, aimed at tackling glioblastoma, one of the nastiest brain cancers out there. Let’s break this down, talk about what it means for traders, and weigh the risks and rewards of jumping into a stock like this.

What’s Driving the Surge?

The catalyst here is huge. Glioblastoma is a brutal disease—think of it as the heavyweight champ of brain tumors, with a grim prognosis. The standard treatments—surgery, radiation, and chemo like temozolomide—can buy some time, but they’re not curing anyone. Median survival is under a year, and only about 10% of patients make it to five years. That’s why the FDA’s Orphan Drug Designation for BA-101 is such a big deal. This status is reserved for therapies targeting rare diseases affecting fewer than 200,000 people in the U.S., and it comes with some sweet perks: tax credits for clinical trials, waived fees, and—here’s the kicker—seven years of market exclusivity if the drug gets approved. That’s a golden ticket for a company like Beyond Air, which is still in the early stages of building its pipeline.

NeuroNOS is diving into uncharted waters with BA-101, focusing on balancing nitric oxide (NO) levels in the brain. Emerging research suggests NO plays a role in how glioblastoma grows and resists treatment, and NeuroNOS is betting their small molecule therapy can shake things up. Their CEO, Amir Avniel, called this a “transformative” opportunity, and the market clearly agrees, sending XAIR shares into the stratosphere as of this writing.

Why This Matters for Traders

Now, let’s get to the meat of it: why should you care? Biotech stocks like Beyond Air are the wild stallions of the market. When they run, they run—like today’s massive gain—but they can also buck you off in a heartbeat. The Orphan Drug news is a classic catalyst, the kind that can spark a frenzy as traders pile in, hoping to ride the momentum. But here’s the thing: big moves like this often come with big volatility. As of this writing, XAIR is trading at around $4.43, up from a previous close of $2.21, but these kinds of spikes can fade fast if the hype cools or if broader market conditions turn sour.

For traders, this is a moment to pay attention to catalysts—events like FDA approvals, clinical trial results, or, in this case, designations like ODD. These are the sparks that can ignite a stock, especially in a sector like biotech where progress is measured in milestones. Want to stay ahead of the game? Getting real-time alerts on market movers can keep you in the loop. You can sign up for free daily stock alerts sent straight to your phone by tapping here. These alerts cover a range of stocks and market tips, keeping you ready for the next big move.

The Risks: Don’t Get Blinded by the Hype

Let’s keep it real—biotech investing is not for the faint of heart. Beyond Air is a small player, with a market cap hovering around $11.55 million before today’s surge. Their revenue is tiny—$4.78 million over the last 12 months—and they’re bleeding cash, with a net income loss of $42.12 million. That’s a lot of red ink for a company with just 5.23 million shares outstanding. Their earnings per share? A brutal -$10.36. This is a company betting on future success, not current profits.

The glioblastoma program is exciting, but it’s early days. BA-101 is still prepping for first-in-human trials, meaning it’s years away from potential approval. Clinical trials are a gauntlet—expensive, time-consuming, and full of risks. What if the data disappoints? What if the trials stall? Or worse, what if a competitor beats them to the punch? The stock’s 52-week range—$2.02 to $13.52—shows it’s no stranger to wild swings, and today’s jump could just as easily reverse if sentiment shifts.

Then there’s the broader market. Biotech stocks often move in herds, and a rising tide in the sector (like we’re seeing today with XAIR) can lift other boats—or sink them if the mood changes. Plus, Beyond Air isn’t just about glioblastoma. They’ve got other irons in the fire, like their LungFit system for respiratory issues and another Orphan Drug Designation for BA-102 targeting Phelan-McDermid Syndrome. Diversification is great, but it also spreads their resources thin.

The Rewards: Why the Market Loves This

On the flip side, the upside here is tantalizing. Glioblastoma is a desperate unmet need, and any company that cracks it could be looking at a blockbuster. The Orphan Drug status gives Beyond Air a leg up, with that seven-year exclusivity window potentially locking out competitors if BA-101 makes it to market. Analysts are bullish, with a price target of $11.00—way above the current price as of this writing, suggesting room to run if the stars align.

Beyond Air’s focus on nitric oxide is also a unique angle. Their work with NO isn’t just for glioblastoma—they’re exploring it for autism, Alzheimer’s, and even lung infections. If their science pans out, they could carve out a niche in multiple high-value markets. And let’s not forget the partnerships. Their collaboration with The Hebrew University of Jerusalem adds some serious academic cred, and their broader pipeline shows they’re not a one-trick pony.

For traders, the reward is in the momentum. Stocks like XAIR can deliver jaw-dropping gains in a single day, as we’re seeing now. If you’re quick on the draw and disciplined with your exits, these moves can be a goldmine. But timing is everything—miss the peak, and you could be left holding the bag.

How to Play Stocks Like This

So, how do you approach a stock like Beyond Air? First, do your homework. Catalysts like today’s FDA news are your bread and butter, but you’ve got to understand the company’s story. Beyond Air isn’t just a glioblastoma play—it’s a bet on nitric oxide as a game-changer in medicine. Check their financials, read up on their pipeline, and keep an eye on upcoming milestones, like when those first-in-human trials for BA-101 might start.

Second, manage your risk. Set stop-losses to protect yourself from sudden drops, and don’t bet the farm on one stock. Biotech is a rollercoaster, and you don’t want to be the guy who’s all-in when the ride takes a dive. Third, stay informed. News moves markets, and getting timely updates can make all the difference. Sign up for free daily stock alerts here to get market tips and trade ideas sent right to your phone.

The Big Picture

Beyond Air’s monster move today is a reminder of why traders love the stock market. It’s a place where a single piece of news—like an FDA designation—can send a stock soaring and get your adrenaline pumping. But it’s also a place where you need to stay sharp, keep your emotions in check, and play the game with a clear head. XAIR is a fascinating story, with big potential and big risks. Whether it’s a short-term trade or a long-term bet, it’s the kind of stock that keeps the market exciting.So, keep your eyes peeled for the next catalyst, stay on top of the news, and maybe—just maybe—you’ll catch the next big wave. Want to stay in the know? Tap here for free daily stock alerts. Happy trading, folks!

Author:
Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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