VPRO gapped up already at market open yesterday, but the real gain began in the afternoon as the news reached the broad traders’ community. The shares closed trading straight at a new 52-week high at $0.14 and the total volume of nearly 63 million shares was the highest in the stock’s history of trading. Though technical indicators look very bullish, the shares got dangerously up into the overbought area and a correction downwards should also be anticipated. Further, there was considerable shorting with more than 37% of the entire volume belonging to shorters.
The signing of the letter of agreement was not officially announced by Viropro, but it appeared in the news of the company’s future partner on the deal, Spectrum Pharmaceuticals 
(NASDAQ:SPPI). According to SPPI statement, the two companies will develop a bio-similar version of the blood cancer drug rituximab, marketed currently by Genentech/Roche and having worldwide sales of billions of dollars.
It looks like many investors thought that Viropro will directly hit the huge sales and profits and did no consider the company’s latest available and not so impressive financial results for the period ended March 2010.
At that time the company had no sales at all, along with minor cash and assets of $24,000 in total against $483,000 in current liabilities. None of the companies filed with the SEC to confirm the deal, the letter of agreement was not announced as a binding contract and the exact conditions under which both companies will cooperate can also only get subject to speculations.
