AP Pharma, Inc. (OTCBB:APPA) Runs Up in Expectation of Financial Results

AP Pharma, Inc. (OTCBB:APPA) is a high-loyalty pharmaceutical ticker that is inching toward a border price, 50 cents. On Thursday’s short hour of trading, APPA reached 47 cents, adding a tentative 1% to the price, on dollar volumes a bit below $500,000. APPA is on track to close a gap from the summer months, when it failed to deliver the expectations of investors. Now, APPA is heading toward a new round of financial announcements, and this usually provides a few good days of trading.

APPA was inflated beyond proportion by a promotion in March, and swung up and down in the summer months between 30 and 50 cents. Now, the company came in with a small change to its management, adding Paul Marshall as senior vice president, and Brian Drazba as vice-president of finance.

Unfortunately, APPA still has not managed to complete its promise to list to a higher-tier exchange. But if this happens, the shares may expect a serious boost. APPA still does not even have a date for the second submission of NASDAQ documentation- and this also means another press release in the making, potentially riling up investors.

Otherwise, APPA continues to be burdened by the usual challenges of an ambitious pharmaceutical developer:

• cash: $53,506,000

• total assets: $55,172,000

• revenue: $0

• liabilities: $4,1 million

• net loss for 2012: $23 million

And traditionally, the gap last spring came in after a letter from the FDA showed that the APPA anti-nausea drug may be slowed down significantly, delaying marketing further in time.

Another ticker that has been struggling to fill its gap is Titan Pharmaceuticals, Inc. (OTCBB:TTNP), but instead of a good and confident run, the shares have gained and retreated erratically in the past weeks. TTNP touched $1.20, but went on to lose to $0.75, as the red trend accelerates.

At a lower price range, another staple of the sector, Advanced Cell Technology, Inc. (OTCBB:ACTC) plays its drama between 6 and 7 cents. In the past months, ACTC runs small upward trends that are quickly obliterated, sometimes even in a day. ACTC, headed by Dr. Robert Lanza, is testing the patience of investors by promising big, yet remaining in the development stage.

If you still want exposure to the pharmaceutical sector, those three tickers are a good indicator of sentiments. Many others pop up with fast gains, and it is common for all to rise on enthusiasm and exuberance, only to retreat at the first bad news. Avoid investing unless you can also afford the bad news.