The stocks of Pro-Pharmaceuticals, Inc. (OTC:PRWP) started to recover from their August plunge in the beginning of September. On Wednesday, Sept. 22, its share prices went up by 6.06% and the number of traded volume reached 600 thousand, about three times the average.
PRWP.ob is engaged in the discovery, development and commercialization of therapeutics for advanced treatment of cancer and fibrosis.
On Sept. 13 it became clear that the company would collaborate with Numoda Corporation. Numoda, which provides technology solutions for medical researches, is to oversee the Phase III clinical trial of the company’s leading medicine for cancer treatment – DAVANAT®. This collaboration is supposed to optimize the time and costs for the trial process.
The company’s quarterly report gives many reasons for concern. There is an accumulated deficit of $53 million due to the fact that the company has spent years in the exploration and development stage. Although this year the company has injected $4.3 million in their cash inflow through sale of stock, the fresh money won’t last long given the rate at which cash flows out of PRWP.ob. Just for the last six months its net income has decreased by $3.8 million.
Investors need to consider the fact that the company has not generated any source of income so far while its financial situation worsens.
