LPTN closed the session yesterday at $0.85 for a share, falling down by 4.49% from the previous close. The trading volume was much heavier than usually and it reached 1.13 million shares. On that high selling pressure the stock price dropped to $0.78 and now only the $0.75 level is left untouched in the past three months as the next support level.
The shares of Lpath shot their highest value for the past 52-weeks in December last year on the announcement of an Option, License and Development Agreement with Pfizer Inc. Under the agreement, Pfilzer got the option to develop and market worldwide Lpath’s lead product candidate tested for the treatment of age-related muscular degeneration and other ophthalmology disorders. Phase 1b and Phase 2a for iSONEPTM are scheduled to begin in the first and respectively in the second quarter of this year and Pfilzer will share the costs of the tests.
Further, LPTN will get a $14 million upfront payment, the total funds that the company is eligible to receive as milestone payments going up to nearly $500 million. Royal payments on the potential sales of iSONEPTM are also foreseen under the agreement.
Unfortunately, traders’ appreciation of the news did not last that long. A couple of days after that, Lpath’s previously filed registration statement for almost 11 million new shares of common stock was also declared effective by the SEC.
