Yesterday, the biotechnology company announced that it has initiated a Phase II clinical trial in Canada for one of its two product candidates, PMX-30063. It has been designed to imitate the activity of human host defense proteins and to fight human resistance against common antibiotics used to treat bacterial skin and skin structure infections. The news caused a real rush on the market and PYMX share price recorded a 10.43% jump, closing at $0.90 on above the average trading volume.
According to the press release, results from the study are expected in the middle of next year, but still it is a large step forward for PYMX, whose only chance for operational profitability is to get approved and market its product candidates. The second one of them, PMX-60056, is in an even earlier stage of its tests, but may soon offer good opportunities if not for sales, then at least for another PYMX stock price surge. The company has completed Phase I clinical trials for PMX-60056 last month and expects to start Phase II studies also in the second half of this year.
PYMX has some minor revenues from research grants and contracts, which are by far not enough the cover the R&D and the other expenses. Though, cash was raised through two debt and an equity offerings in March this year and in November last year and according to the management it should be enough to fund the expenses over the next months.
The debt financing provided in March $10 million in gross proceeds and over the sale of stocks $20.7 million were secured in November, all of that money being used to fund the development of the above mentioned drug candidates.
Unfortunately, for PYMX shareholders the dilution may not be over. The company also has an agreement with an investment fund to sell up to 12 million common shares for a $10 million investment in the company, which will constitute substantial dilution of the currently outstanding 81 million shares of PYMX common stock, causing possibly a fall in the share price.
