Wellgistics Health Inc (NASDAQ: WGRX) more than tripled this morning after announcing a non-binding letter of intent with Datavault AI Inc. (NASDAQ: DVLT).
The initiative dubbed “PharmacyChain” will integrate blockchain-enabled smart contracts into its prescription drug tracking system.
In short, it aims at digitising the journey of a prescription from issuance to fulfilment.
While the announcement sparked a frenzy of retail investor interest, sending WGRX stock up from 40 cents to as much as $1.30, the price action appears to be running far ahead of any confirmed commercial traction.
Why did Wellgistics stock soar on Friday?
On paper, the partnership taps into two of the market’s hottest themes: blockchain and healthcare digitisation.
PharmacyChain promises to bring transparency and traceability to the $600 billion US prescription drug market by ensuring that medications reach the right patient with the right data trail.
The companies also floated the idea of a revenue-sharing model based on pharmacy usage fees, hinting at a potential recurring income stream.
For a microcap name like Wellgistics stock, the slightest possibility of a scalable tech platform can ignite speculative buying.
The Datavault announcement also aligns with WGRX’s broader push into artificial intelligence (AI) enabled pharmacy tools – including its recently launched HubRx AI platform.
Is the WGRX share price surge reliable?
Beyond the aforementioned flashy headline, Wellgistics’ fundamentals tell a more sobering story.
The Tampa-headquartered firm remains a penny stock with no history of sustained profitability.
Plus, the PharmacyChain deal is still in its exploratory phase – non-binding and without disclosed financial terms or deployment timelines.
That makes the over 200% increase in WGRX share price look more like a momentum trade than a valuation reset.
Without concrete revenue or adoption metrics, Wellgistics could easily retrace much of its recent gains in the coming sessions.
Meanwhile, the Nasdaq-listed firm lacks data on insider trades as well – further strengthening the bear case.
And of course, it’s not like WGRX currently pays a dividend to take on these aforementioned risks.
Therefore, chasing the momentum in it after the blockchain news is much more like a gamble than a sound investment.
How Wall Street recommends playing Wellgistics
Wellgistics shares are not covered by any major Wall Street firm – and that lack of institutional oversight is a red flag for risk-conscious investors.
The company trades on low volume and remains in penny stock territory, which often attracts speculative flows, pump-and-dump behaviour, but lacks the liquidity and transparency of more established names.
The absence of analyst coverage also means there’s no consensus on valuation, earnings potential, or competitive positioning.
For now, WGRX stock remains a high-risk, high-volatility play – better suited for traders chasing headlines than long-term investors seeking durable growth.
Until the blockchain vision turns into verifiable revenue, scepticism is warranted.
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