is a huge progress for the stock as compared to its average volume of 226 thousand shares.Apparently, BNVI has provoked the investors’ interest successfully, though we still cannot consider the high trade as a new bullish trend.[BANNER]
According to the records, the stock started to climb up as soon as the company reported that it was given a final guidance by the European Medicines Agency for its drug candidate Menerba. Receiving this guidance offers new marketing opportunities to Bionovo and the company is optimistic about its future development.
This appears to be the most reasonable explanation on the stock’s high momentum, though the final results by the drug’s clinical trials are still to be seen.
Bionovo, Inc. is a development stage company engaged in the development of pharmaceuticals, derived from botanical sources, to treat cancer and women’s health. Historical data shows that the company has traded much higher over the past 12 months. last September the stock price reached approximately $1.00, however after that it started to fall down.
The 2010 first quarter results of Bionovo don’t look much promising. The company reported that it has not generated any revenue and expects “to continue to incur significant operating losses for the foreseeable future”.
BNVI has funded its operations mainly through private placements and public offerings of its capital stock, financing, license fees and interest earned on investments. At the end of March it had an accumulated deficit of $60.5 million and the company doesn’t expect any profit unless its drug candidates have been approved. Bionovo has registered more assets than liabilities on its balance sheet, though if the company fails to find additional capital, it may reflect on the shareholder interests.
Presently, the company relies on its new drug candidate and it is to host a conference call and a webcast next week to review its second quarter results. After that, the investors can make their final conclusions.
