Without any recent official press releases from the company and ignoring the extreme dilution risks, it is hard to say what exactly is driving the share price right now and why ARDM stock remains strongly demanded. Yesterday, the shares added 20.83% to their value and the new yearly top is at $0.29. There was another record though: 3.14 million shares were traded yesterday, an unseen volume for the past 52-weeks.
It seems that the more attention the stock is getting due to its bullish chart, the more shorters come to the market. Yesterday, 58% of the record volume consisted of short sales and that percentage reached even 68% last Monday.
The company has no marketable products yet and states in its latest quarter report that no revenues from product sales are expected over the coming year. In 2006, ARDM sold its assets related to its Intraject needle-free injector technology platform for further development to Zogenix, Inc. As a product called SUMAVEL DosePro and based on that technology was launched by Zogenix, ARDM received a $4 million royalty in the first quarter of this year. Based on the distribution terms with the wholesalers, the company expects recurring royalty revenues beginning this month.
Probably the expectation of the next financial results are making the market so optimistic right now. The other “news” discussed in the investor forums these days dates back to this May. It concerned the received FDA clearance for ARDM’s Investigational New Drug application related to the current lead product candidate of the company, a liposomal formulation of the antibiotic ciprofloxacin. Results of the following trials have not been announced yet, but should also come out in the second half of this year.
