NanoViricides (OTC:NNVC) announced today the very strong effectiveness of its oral anti-influenza drug, FluCide. The news should cheer bulls, bears, and pigs since the report corresponded to studies in animals. For several years, Nanovircides has been developing an orally administered treatment for influenza. According to the company, patients respond quicker to oral drug administration than they do to drugs introduced intravenously.
Buyers of the stock did not appear to have any difficulty swallowing the news. Initially, traders showed little reaction to the news as the stock opened virtually unchanged from Friday’s closing price. Shares touched the low for the day at $0.45 by the time the first 30 minutes had eclipsed. As the lunch hour approached on the east coast, buyers began to get an appetite for the stock and sent share prices to $0.595, which was the high for the day. The stock closed at $0.577 for a gain of 20%. Volume on the day registered 750,000 shares, an amount four times the average daily volume.
Almost a year ago, the shares of NanoViricides began falling from its 52-week high established at $1.26. Share prices dropped 50% as the first of the year rolled around. The stock rebounded forty cents in February before sliding again. The annual low point for the stock occurred last week when shares traded for $0.44. Traders will be asking whether the move today might signal the coming of another dramatic bounce in the stock.
Other recent news for the company includes the following:
- July 23, 2012: NanoViricides hired a consulting firm to help expedite human trials in Australia.
- June 29, 2012: The company announced that it raised $5 million from a shelf offering. The additional funds give NanoViricides enough cash for 24 months of operations.
Stock promoters have been rather quiet as of late on NanoViricides. A few newsletters on Stockreads.com chatted in February about the rebound in share prices. A total of 15 stock promotions can be viewed on Stockpromoters.com, with the most recent tout appearing on May 9, 2012. The only noise on Twitter came from @Bullblitz who noted the results of the study today.
The company focuses on the development and commercialization of therapies to treat patients with life threatening viral diseases. NanoViricides has several drugs in the early stages of development for diseases like influenza, herpes and AIDS. As of last quarter, the company had no products for sale. It does face some competition from the likes of ViroPharma (NASDAQ:VPHM).
The spike in price and volume came just days after the stock recently made a fresh low on the year. Traders will be looking to see if there is more to the rally, or if this is just a hiccup in a long decline.
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