In Wednesday’s midday turnaround, CynergiStock (NASDAQ: CYN), a clinical-stage biotech firm, saw its shares soar 15% to $48.75 by the closing on Thursday, June 26, 2025 – its biggest one-day percentage gain in 18 months. The rally follows months of trading sideways and has analysts reviewing three main factors that collided to generate today’s perfect storm.
FDA Gives the Green Light to NeuroVax in a Surprising Wednesday Decision
The main culprits were released after closing on Wednesday, June 25th, when the FDA surprised by approving CynergiStock’s NeuroVax for Alzheimer’s under the accelerated approval process. Although the market’s initial reaction to the after-hours news was relatively muted, the importance of the news became apparent during Thursday’s analyst calls. NeuroVax has shown a clinically significant slowing of cognitive decline of 37% in trials, far surpassing standard-of-care treatments currently available.
If that’s not enough, NeuroVax was granted both Breakthrough Therapy and Priority Review designation by the FDA, potentially shortening the typical commercialization time frame. “This gives CYN a nearly 12-month lead over the competition on $12+ BN Alzheimer’s therapeutic market,” wrote Leerink Partners analyst Michelle Rodriguez in a Thursday morning research note. The firm now estimates that NeuroVax could achieve 19% of the early-intervention market by 2027.
Eli Lilly Deal Talks Hinge on Make-or-Break Time.
Market-rumbling rumors returned Thursday in the pre-market over advanced merger talks involving CynergiStock and big-pharma Eli Lilly. Companies are nearing the finalization of a co-development deal worth CYN $900 million upfront and more than $2 billion in milestone payments, according to multiple sources familiar with financial networks.
The deal, if done, would use Lilly’s existing neurology commercial infrastructure and would include wide-ranging European rights, he said. “This is as good as it gets for a mid-cap biotech—big pharma validation while keeping the upside,” BTIG biotech analyst Mark Chen said Thursday. Volume rose to 22 million shares by 11 A.M. in New York, almost six times the 90-day average.
Short Squeeze Fuels Thursday’s Momentum
The confluence of a number of bullish catalysts resulted in an explosive short squeeze that also helped to propel Thursday’s rally. Short interest was 28.4% of the float as of June 21 settlement data and is some of the highest in the biotech sub-sector. As shares of CYN pierced its 200-day moving average of $42.50 in early trading Thursday, bearish traders were forced to cover positions, which created a cycle of buying pressure.
Retail traders flooded in as CYN emerged as the top-trending ticker on several investment platforms by midmorning Thursday. There was a frenzy of trading around July $50 calls, with more than 15,000 contracts that had changed hands before noon. The gamma squeeze effect snowballed as market makers adjusted their hedges during the trading day.
Valuation Debate Arises in Thursday Analysis
CYN now has a market cap of $5.4 billion, or 4.5x trailing revenue, and analysts were split on their Thursday reactions. Despite speculation, however, shares of CEL-SCI hadn’t been seeing any health-related jumps, so Morgan Stanley was right to maintain its Equal Weight with a note around midday that said “the current valuation assumes flawless NeuroVax commercialization. On the other hand, JPMorgan lifted CYN to Overweight at 1:30 PM EST, noting the “transformed risk/reward profile” following FDA approval.
What Happens Now After Thursday’s Rally?
Its $50 resistance is psychological, and $44 (former resistance) is now the support that was formed Thursday. Today’s rally has garnered even more attention for the neurology-centric biotech space — in fact, a handful of its small-cap counterparts are seeing similarly explosive action in their options pits today.
Through the close of the markets (markets close at 4:00 PM EST) on Thursday, June 26, 2025, CynergiStock saga, having taken a dramatic turn for the positive, is a perfect example of how regulatory, partnership, and technical events can coalesce to produce violent advances in biotech stocks. Whether the gains remain through Friday’s session will depend on whether the Lilly partnership is confirmed and overall market conditions.
