May Oncothyreon Inc (USA) (NASDAQ:ONTY) Celebration Be Short Lived?
Oncothyreon Inc (USA) (NASDAQ:ONTY) shares are up by 24.39% compared to yesterday’s closing price of $1.8 per share. It is currently trading at $2.24 per share.
This huge surge in share value was in the back drop of the company making SEC filings to the effect that German pharmaceutical giant Merck Serono has indicated its willingness to continue with clinical trials and further development efforts on the “investigational target drug” MUC1 (cancer immunotherapy tecemotide) which was being jointly developed by the two companies in an effort to find a lasting cure for certain types of cancer. As per today’s announcement, Merck is committed to initiate a new phase 3 trials named “START 2” on patients suffering from advanced stage 3 lung cancer using the same target drug. Readers should note that this decision from Merck come after a previous Phase 3 trial for the same drug did yield expected results on another form of cancer for which the trail was conducted.
A total of 12.09 million shares of Oncothyreon Inc (USA) (NASDAQ:ONTY) have changed hands in today’s trading session. This is way over its daily average trade volume of 379,760 shares per day. At current valuations the company stock is trading 61% below its 52 week high valuation and 43% above its 52 week low price. At current valuations, the company market cap is $114 million with 63 .4 million outstanding shares. The company’s net loss of $29 million on a 12 month trailing basis and has 42 full time employees.
The stock had gained over 6.5% in the past 90 days. As per few analysts the company has great potential to be a takeover target for Merck over the next few quarters. The reason sighted is the high probability of the phase 3 trials of “tecemotide” to succeed.