Will InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) Make a Comeback
The recent changes in InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) aren’t working well for the company’s stock. In a matter of 4 trade sessions the ticker lost more than half of its value and might be headed below the $1 mark soon.
After the change in leadership due to the medical condition of former CEO Francis M. Reynolds, who also served as Chairman and CFO of NVIV, the company updated their research plan and its contents weren’t to the liking of the people holding shares of the company’s stock.
A few research reviews followed and landed some more blows from which the outcome was imminent. As it turns out, since the changes in the company’s management took place the new business plan suggest that their spinal cord injury treatment will come 4-5 years later than previously expected.
The estimates come from Zacks Small-Cap Research and are based on the plans of the people in charge of the company. Under the guidance of Frank Reynolds it was estimated that the company would have been able to begin a 5-person pilot study in mid-2013, which would take 15 months to finish, however, the new projected timeline suggests that this will happen in Q1-2014 and will take 21-24 months.
This in term moves the scheduled submission of the study in question to the FDA from year-end 2014 to early-to-mid 2016. There is a pivotal program phase that has been added which will add 2-3 more years until the company will be able to get an FDA approval, which means that the closest estimate for that to happen is mid-to-late 2019.
This doesn’t sound very good and that’s the reason why the stock’s price is losing value so fast. For now, the period before the company can start making some revenue is quite big. The stock might continue crashing and it is still unknown if the company will have the will and resources to finish the job. After all they have $22 million in cash, which is very good, but considering the $14 million net loss for Q2 this year we still have our doubts.
This is why we advise you to do a lot of due diligence, weigh out the risks and be prepared for a long wait until you make some money on your investment. That’s if you do decide to take the shot at NVIV‘s stock.
Another troubled medical stock at the moment is that of Affymax, Inc. (OTCMKTS:AFFY), who had 2 sessions in the red, again, after a pesimistic review from Seeking Alpha. Today, however, they are recovering and are 11% up from yesterday’s close at $1.75. The volume is also high with a total of 1.4 million traded shares in an hour and a half and a trade value of $2.3 million.]
On the other hand Nuvilex, Inc. (OTCMKTS:NVLX)’s inconsistent movement is still attracting people who have an adrenaline crave and want to take their chance and bet on a very active ticker and unpredictable ticker.
