Bionovo Inc. (PINK:BNVI) was voluntary delisted from the NASDAQ Capital Market last month and since then it’s been a 
PINK-sheet company. After the downtrend the stock has formed, suddenly BNVI got back on track.
Yesterday, the stock soared 14.66%, while its traded volume totaled over 1 million shares. But what is the reason for the massive gain?
Obviously, the piece of news by Bionovo. It was released just yesterday when the company reported the publication of two studies that characterize the anticancer properties of its drug Bezielle, and identify the active principles of the drug.
The optimistic press release pumped up BNVI stock price at once, however, apart from the announcement the company has nothing else to declare.
Bionovo, Inc. is a development-stage company engaged in the development of pharmaceuticals, derived from botanical sources, to treat cancer and women’s health. The company announced that it was intending to file a Form 25 with the SEC on February 7, 2012 to commence the NASDAQ delisting process. Though, the answer from NASDAQ is still to be seen.
Meanwhile, BNVI is recruiting patients to its Phase 3 pivotal trial for Menerba and trial results are expected to be released next year. However, the company’s latest 10-Q remains rather disturbing.[BANNER]
As of September 30, the operation of Bionovo has been placed under a going concern due to its sustained recurring losses, negative cash flows and huge accumulated deficit. The management claimed that if the company was not successful in its efforts to raise additional funds by the end of 2011, BNVI may be required to delay, reduce the scope of, or eliminate one or more of its development programs.
Maybe namely this factor was the reason for the intensive selling of BNVI shares of common stock to certain members of the company. Though, even these transactions failed to influence the stock price at that time.
Presently, Bionovo relies mostly on its anticancer findings, however, the final results are too soon to be seen.
