Checkpoint Therapeutics (CKPT) Stock – Investment Risks for Retail Investors
Checkpoint Therapeutics (Nasdaq: CKPT), a clinical-stage biotech company focused on developing immuno-oncology therapies, has garnered attention from retail investors in recent years—especially after announcing the FDA approval of its lead drug candidate. While this development may appear promising, investing in small-cap biotech companies like Checkpoint Therapeutics can involve significant risk.
The White Law Group is currently investigating potential claims involving brokerage firms that may have improperly recommended speculative biotech investments like Checkpoint to retail clients.
Stock Performance Snapshot
- Ticker: CKPT (Nasdaq)
- Current Price: ~$4.26 (as of May 30, 2025)
- 52-week range: $1.30 – $4.50
- Market Cap: ~$345 million
- 1-year return: +178%
- 5-year return: -91.8%
Understanding the Risks of Small-Cap Biotech Investments
1. Speculative Nature of Development-Stage Biotech Stocks
Many biotech companies, including Checkpoint, operate without consistent revenue and rely heavily on investor funding to sustain operations. These companies often face a long and uncertain road to commercial success, with numerous regulatory, clinical, and competitive hurdles along the way. Even after FDA approval, commercializing a drug can be a costly and risky endeavor.
2. Dilution Through Repeated Stock Offerings
To raise capital, small biotech firms frequently issue new shares in secondary offerings, which can significantly dilute the value of existing shareholders’ investments. In many cases, these offerings are made at a discount to the current market price and include warrants or other incentives that further depress share value over time.
3. Due Diligence Failures by Brokerage Firms
Unfortunately, some brokerage firms may recommend these high-risk investments to retail investors without fully disclosing the speculative nature of the stock or conducting adequate due diligence. In some instances, there may be conflicts of interest if the firm has an investment banking relationship with the company or stands to benefit from underwriting or promoting the stock.
4. Volatility and Illiquidity
Micro-cap biotech stocks often experience dramatic swings in price based on news events such as FDA filings, clinical trial results, or merger rumors. These stocks may also be thinly traded, making it difficult for investors to exit their positions without affecting the market price.
5. Suitability Concerns
Many investors are unaware that their portfolios include risky biotech stocks until they suffer significant losses. Financial advisors have a duty to ensure that any investment they recommend is suitable for the client’s financial goals, risk tolerance, and investment profile. Recommending high-risk biotech stocks to conservative or income-seeking investors may constitute a violation of that duty.
The White Law Group is Investigating
The White Law Group is currently investigating potential claims involving brokerage firms that may have improperly recommended Checkpoint Therapeutics or similar biotech stocks to investors. If you suffered losses and were unaware of the risks, you may have a claim to recover your investment losses through FINRA arbitration.
We represent investors in claims against brokerage firms for unsuitable investment recommendations, failure to supervise, and misrepresentation or omission of material facts.
Free Consultation
If you invested in Checkpoint Therapeutics (CKPT) at the recommendation of a broker and have concerns about your losses, please contact The White Law Group for a free consultation.
888-637-5510
info@whitesecuritieslaw.com
www.whitesecuritieslaw.com
