- Wellgistics has announced a non-binding letter of intent regarding Datavault AI.
- The initiative aims to digitize the process from prescription issuance to fulfillment.
- Here’s why WGRX stock isn’t as big as the market expects.
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 prescription drug tracking systems.
In other words, it aims to digitize the process from prescription issuance to fulfillment.
The announcement sparked frenzied interest from retail investors, with WGRX shares rising from 40 cents to $1.30, but price action appears to have far outpaced any confirmed commercial traction.
Why did Welgistics stock soar on Friday?
In theory, this partnership leverages two of the hottest themes in the market: blockchain and healthcare digitization.
PharmacyChain is committed to bringing transparency and traceability to the $600 billion U.S. prescription drug market by ensuring drugs reach the right patients through proper data tracking.
The companies also floated the idea of a revenue-sharing model based on pharmacy fees, suggesting a potential source of recurring revenue.
For microcap stocks like Welgistics stock, even the slightest chance of a scalable high-tech platform can trigger speculative buying.
Datavault’s announcement also aligns with WGRX’s broader efforts. artificial intelligence (AI)-enabled pharmacy tools – including the recently launched HubRx AI platform.
Is WGRX’s soaring stock price reliable?
Beyond the flashy headlines mentioned above, Welgistics’ fundamentals tell a more sobering story.
The Tampa-based company remains a penny stock with no history of sustainable returns.
Additionally, the agreement with PharmacyChain is still in the review stage and is not legally binding, with no financial terms or implementation schedule disclosed.
As such, the over 200% increase in WGRX stock looks more like a momentum trade than a valuation reset.
Without concrete revenue or hiring metrics, Wellgistics could easily recoup much of its recent gains in coming sessions.
Meanwhile, the Nasdaq-listed company also lacks data on insider trading, further reinforcing bearish views.
And of course, WGRX isn’t currently paying you. dividend In order to assume these aforementioned risks.
Therefore, chasing blockchain news after it is more of a gamble than a sound investment.
How Wall Street Recommends Welgistics
Wellgistics stock is not included. It comes from a major Wall Street firm, and the lack of institutional oversight is a red flag for risk-conscious investors.
The company has low trading volumes and remains in the realm of penny stocks, often attracting speculative flow and pump-and-dumping activity, but lacks the liquidity and transparency found in more established names.
A lack of analyst coverage also means there is no consensus on valuation, earnings potential, or competitive position.
For now, WGRX stock remains a high-risk and volatile stock, better suited to headline-seeking traders than long-term investors looking for sustained growth.
Until the blockchain vision translates into verifiable returns, it’s natural to be skeptical.
