Ever since PolyMedix, Inc. (OTC:PYMX) slumped by 14.5% in early-April, it has been delivering a run-of-the-mill performance on the market. Last week, PYMX continued to lose ground.
In an attempt to buck the downward trend, PYMX issued a press release on May 5 announcing it would present its ‘lead antibiotic drug candidate’ at the upcoming European Congress of Clinical Microbiology and Infectious Diseases. Scheduled to commence on May 7 in Milan, Italy, the congress is expected to draw, as usual, in excess of 10 thousand experts in the field.
As it is, investors gave a lukewarm response to the news. By the end of the subsequent session, PYMX lost additional 5%, closing at a six-month low of $0.56 per share. The only indicator hinting at some interest in PYMX shares was the turnover. The latter reached a four-week peak of 666K, considerably higher than the daily average trading volume of some 300 thousand.
Currently classified as a biotechnology company, Polymedix specializes in developing original drugs to be used for treating both infectious and cardiovascular diseases. PYMX’s flagship product candidate PMX-30063 is highly regarded as the ultimate bacteria killer due to its unique ability to imitate a human natural protection mechanism. Unfortunately, the PMX-30063 is still a work in progress, which is why investors have no clue about the exact moment in which the final product will hit the shelves.
Occupying the OTCQB marketplace, PYMX has been fairly diligent with regard to its financial policy. Not long ago, it published a comprehensive 2010 annual report. According to the 10-K form, the company closed the twelve-month period ended Dec. 31 with:
- $20+ million in current assets;
- $5.7 million in current liabilities;
- debt ratio of 0.58;
- net loss exceeding $15.5 million.
With a working capital surplus going beyond the $14 million mark, the $1.418 million allocated for executive compensation for 2010 seem fairly justified. Yet, PYMX is bound to face a shady future unless it brings the development of its PMX-30063 to a successful end.
