What happens when a three-year study fails to produce the desired results You either start over, or opt for something different. In this respect, Emisphere Technologies, Inc. (OTC:EMIS) will most probably choose between both alternatives, trying to pick up the pieces of its shattered stock.
On Nov. 14, EMIS filed an 8-K form on the first interpretable test results on Phase III Study which is aimed at measuring the efficacy of oral calcitonin when used in the treatment of osteoporosis. Without going into further details, we will just point out that the study basically yielded controversial results, which is why EMIS confirmed in that same 8-K that it would be requiring further analysis and evaluation of the results before deciding on a possible continuation or ultimate termination of the program.
As a result of the press release, EMIS lost a staggering 75% in value on the very same day, as well as further 25% yesterday. Now, EMIS stock stands at a three-year low of $0.29 and it will need considerable support at all levels to crack the $1 threshold again.
A biopharmaceutical company, Emisphere Technologies, Inc. has developed a proprietary Eligen (R) technology allowing for a novel and improved delivery of pharmaceutical compounds and medical foods. Last week, EMIS submitted a full-on 10-Q form outlining its financial state in the third calendar quarter of 2011. As of Sep. 30, the company’s balance sheet contained:
- cash reserves in excess of $4.7 million vs. $5.3 million a/o Dec. 31, 2010;
- working capital deficit of $54 million as compared to $20 million in Q4 of 2010;
- quarterly net loss of $17.6 million vs. $18.2 in the last quarter of 2010.
Needless to say, EMIS has spent much of this year investing in its comprehensive study program. As a result, the company’s working capital gap is broadening. Unless the program proves successful in the end, EMIS managers will have a hard time maximizing shareholders value.
