Two weeks ago, InVivo Therapeutics (OTC: NVIV) released second quarter financial results that showed a pro forma loss of $0.04 versus a loss $0.05 for the same period last year. The company also mentioned the clinical progress for its biopolymer scaffolding and hydrogel technologies. According to the report, the FDA is prepared to clear the biopolymer scaffolding for clinical trials in the treatment of acute spinal cord injuries. Not only did the stock barely waver on the news, it has taken a tumble the last four days where traders have seen share prices fall 20%.
Yesterday’s trading started off innocently with shares trading positive for a few minutes at an intraday high of $2.10. When the clock struck 10:00 am on the east coast, sellers started unloading their shares. By the beginning of lunchtime, the stock traded at its low for the day at $1.67, or down 41 cents from Wednesday’s closing price. Buyers made a stand and gobbled up shares, driving the price back towards $2.00. The stock drifted in the afternoon and closed yesterday with a loss of 7%, down 16 cents at $1.92. The number of shares traded on the day totaled 848,000, which easily beat the 90,000 shares traded on an average day. There appeared to be no news items associated with yesterday’s trading action.
Since the end of last year, share prices of InVivo Therapeutics have traded in a range from its annual high of $3.23 to just a bit under $2.00. Yesterday’s action put the stock into a territory not seen for nine months. The 52-week low was established last October when shares traded for $0.60. The question confronting traders is whether the break in price signals the start of a new down trend, or does the heavier-than-normal volume along with a midday bounce off the lows indicate a possibly rally coming in the next few days.
In other related news, the company announced on July 2, 2012, that it had approached the FDA on a hydrogel for the treatment of chronic lower back and leg pain, which affects over 4.2 million patients in the United States alone.
Stock promoters have touted the stock a total of 12 times, which can be viewed on Stockpromoters.com. The last promotion occurred four months ago. On Twitter, the only mention yesterday came from @Stockstobuy.
The Cambridge, Massachusetts, company focuses on developing technologies for the treatment of spinal cord injuries. In addition to treating acute spinal cord injuries, InVivo Technologies is looking to apply its platforms to peripheral nerve damage, postsurgical treatment of transected nerves, and spinal cord injury due to tumor removal. The company was founded in 2005.