SNGX share price dropped down by 15.22% on a trading volume of over 2.36 million shares, which was 11 times higher than the volume from Friday and also much higher than the average for the stock. The shares closed at $0.195, but during the day the share price proceeded even further down to hit the yearly bottom at $0.17. It seems like the reported yesterday preliminary results from the Phase 2 “proof-of-concept” trial for the company’s product candidate orBec were not the good news that the market needed to hear.
The drug candidate has been proven safe and well tolerated, though the results could not reach the required statistical significance and orBec only has the potential to be clinically relevant. On the background of the previous related updates from the company, it is not such a surprise that traders did not feel optimistic about SNGX stock.
The price of the company’s shares fell to the bottom about a month ago, as Soligenix changed the guidance for the completion of the Phase 3 clinical trial for orBec. The timeline for the completion has been postponed from the first to the second half of next year. Further, the uncertainty has also been increased by the company’s announcement that the Board of Directors has been granted discretionary authority to decide if, when and at what ratio a reverse stock split should be conducted in the next thee years.
Soligenix receives some grants from the National Institutes of Health, which are the only source of revenues and are by far insufficient to cover the research and development and other expenses. Today’s session might show if SNGX share price hitting twice the bottom will be the long expected downtrend reversal signal.
