Talon Therapeutics, Inc. (OTC:TLON) stock lost a large portion of its value in just two trading sessions last week. The update provided by the management turned out to be bad news for the market, making TLON fall down to a hard support level. 
On Friday TLON closed the market at $0.84 with a 5.51% decline from the previous close and still large trading volume of almost 635,000 shares. Such extremely negative reaction was barely expected by the company’s management, who decided last Thursday to keep investors up to date with its plans. The same day TLON dropped to $0.70 for a share, a hard support level set in April this year.
The update in question that brought all the disappointment concerned Talon Therapeutics’ product candidate Marqibo, a novel formulation product candidate of the FDA-approved anticancer drug vincristine and developed by the company for the treatment of acute lymphoblastic leukemia (ALL). The press release informed that the planned NDA submission for Marqibo will not happen by the end of June 2011, as planned, but at some time during the third quarter of the year.
That delay in the progress of the pharmaceutical company was obviously not the right thing to announce, especially after TLON had just come to a higher price level. The company still has no approved products, and respectively no source of revenues. In the last 10-Q, TLON also stated that it did not have sufficient capital racecourses to fund its development plan beyond 2011.
Another negative signal came also in May as a prospectus related to the resale of TLON shares was filed. According to it, certain stockholders of the company are offering on a resale basis 6.4 million shares of the company’s common stock, including about 2 million shares issuable upon the exercise of outstanding warrants.
