Yesterday, Icagen, Inc. (NASDAQ:ICGN) hit a huge volume gain. Just for a day, the stock sold over 774 thousand shares on the market and gained 8.22% on its price. That’s quite an unusual value for ICGN, as its average volume is only 
125 shares traded.
What’s behind the stock’s high momentum then?
Apparently, that’s the news that ICGN won’t be delisted from NASDAQ at least by November, this year. According to Triangle Business Journal, “Nasdaq has granted the company’s request for more time to regain compliance with the $1.00 per share minimum bid price requirement”. Though, Icagen can not guarantee it will be able to reach the minimum price.
Still, last week, the company released another good news on receiving a $3 million milestone payment from Pfizer. Probably, that has impressed the investors, as currently, the stock still moves up.
Icagen, Inc. is a biopharmaceutical company focused on the discovery, development and commercialization of orally-administered small molecule drugs that modulate ion channel targets. Historical data shows that last year the company used to trade at over $1 per share, though after that the price fell down.
The ICGN’s first quarter results for this year point that its revenue and gross profit have increased, though it has suffered a net loss. According to the financial report, the company still has more assets than liabilities on its balance sheet, which should be sufficient to cover its current operations. However, ICGN stated that: “A substantial portion of our revenue for at least the next several years will depend on our achieving development and regulatory milestones in our existing collaborative research and development program and entering into new collaborations.”
Icagen claimed that it would need additional funds to meet its obligations and fund operations beyond the third quarter of 2010, and announced that its second quarter results are to be reported on 10 August.
