On Friday the share price of IntelGenx Technologies Corp. (OTC:IGXT) rose to the 50-day moving average without any news from the company. Yesterday evening, we received a promotional newsletter on the stock and it seems like traders are expecting FDA decision about the company’s product candidate to come out very soon. 
Friday session closed at $0.57 for a share, which represents a 12.20% jump from the previous close. Trading volume was not a record, but is yet significant with over 488,700 traded shares, which is twice the average for the past 30 days. The touch of the 50-day moving average at $0.60 during the session is usually a bullish signal, while the RSI and the MACD lines are also pointing up.
Yesterday evening, a promotional e-mail on IGXT came into our database. It focuses on the expected decision of the FDA concerning the company’s product candidate CPI-300 which is tested as an antidepressant tablet. The promotional e-mail contains no compensation disclosure. The expected date of the FDA announcement is November 13, 2011, but the decision could come out a few days before or after that date, which should explains fluctuations of the share price.
Unlike many other bio-technology stocks awaiting FDA approval, the share price of IGXT has been depreciating severely during the months before the expected approval date. The company’s reported revenue has declined substantially in each following quarter, while the market cap is currently over six times the book value of IGXT equity.
