Pheton Holdings Dismisses Rumors Of Acquisition By Gilead, But Retail’s Extremely Optimistic

China-headquartered healthcare solutions firm Pheton Holdings (PTHL) on Friday dismissed rumors about a potential acquisition by American biopharmaceutical company Gilead Sciences (GILD) as “false.”

Shares of PTHL traded 13% lower on Friday afternoon at the time of writing, while GILD shares traded 1% higher.

On Stocktwits, retail sentiment around Pheton is trending in the ‘extremely bullish’ territory, coupled with ‘extremely high’ message volume. According to Stocktwits data, retail chatter around the Nasdaq-listed stock has jumped 62% over the past seven days.

A Stocktwits user believes the shares will go up from their current bottom levels.

Pheton stated that it believes the recent “extraordinary and unexpected” decline in its share price was triggered by an article published by a platform called ‘The Bear Cave’. The company dismissed the article as speculative.

“At no point has the company participated in, initiated, or sanctioned any rumor, communication, or activity regarding an acquisition by Gilead, or any other party. Pheton has had no contact with Gilead, and any statements or reports suggesting otherwise were and are entirely false and fabricated,” the company said in a statement while categorically denying any involvement in or knowledge of any form of stock price manipulation.

The firm said that it plans to work with Nasdaq and regulatory authorities to hold those responsible accountable.

The company also added that it is monitoring internal controls and communications to ensure that any further misinformation is “swiftly and effectively” countered.

PTHL shares lost about 97% of their value in the last five days. The stock is down by about 82% so far this year.

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