Despite a weak market environment on Tuesday, shares of small-cap biotech stock Affmax (NASDAQ: AFFY) are surging once again. Heading into the closing bell, the stock had added more than 5 percent and was sitting near a new 52-week high at $23.76. Shares have traded in a range between $4.31 and $23.95 over the last year. During this time, AFFY has soared nearly 375 percent, making it one of the biggest winners on the Nasdaq. In 2012 alone, the stock has climbed 260 percent.
The company is engaged in drug development for serious and life-threatening diseases. Its lead product candidate is peginesatide, indicated for the treatment of anemia in chronic kidney disease patients on dialysis. The drug is currently under review by the FDA.
Market participants are clearly excited about the potential revenue generating prospects of the company's lead drug candidate and continue to push the stock up. At current levels, AFFY has a market cap of $861 million and does not pay a dividend.
The stock is trading more than 27 percent above its 50-day moving average and 76 percent above its 200-day moving average. Shares have a Relative Strength Index reading of above 78, indicating significant momentum. The high reading, however, could also suggest that AFFY may be vulnerable to a sharp sell-off.