Sirona Biochem Corp. (CVE:SBM) (PINK:SRBCF) lost more value on the market when correcting down from a new induced price rally recorded last Friday.
SBM lost 23.3% on Monday as the natural correction kicked in on the short term price spike. The trading volume was comparatively high during the decent but was barely a shadow of the previous session’s activity. 1.9 million shares changed hands which is massive when compared to the average daily turnover of 434 thousand.
The stock gaped up last Friday after the company published an update on their research stating the lead compound for the treatment of type 2 diabetes was shown to reduce the blood glucose levels in their test model.
The compound is capable of reducing the glucose level comparatively quickly and was shown to be well tolerated in a separate study. The drug works in the kidneys by reducing the re-absorption of glucose into the blood.
While the tests are promising thus far, they have only been done on lab rats and are still far from human testing.
The reaction on the stock market thus was clearly premature and the price will likely return towards its previous levels in a timely manner.
