Generex Biotechnology Corp.(OTCMKTS:GNBT) On Its Way To Recovery
After the slump they suffered back on May 24 Generex Biotechnology Corp. (OTCMKTS:GNBT) finally recovered some of the lost ground. A couple of tumultuous sessions followed after the fall to 3 cents per share but finally last Friday the ticker surged by more than 21% to reach $0.36. Interest in the stock was also significant with 21 million shares traded at the end of the day.
GNBT is a biomedical company that is actively trying to develop drug delivery systems and technologies. They are mainly focused on the creation of technology for drugs usually administered by injection to be absorbed orally. The other major selling point for them is the AE37 cancer vaccine developed by their wholly-owned subsidiary Antigen Express, Inc., which is currently in a late Phase IIb trial. The US Food and Drug Administration has even encouraged GNBT to submit a protocol for a Phase III trial.
Nevertheless the underlying fundamentals if the company still raise some concerns. According to the latest 10-Q report for the period ending January 31 they had:
- $1,2 million cash
- $1.3 total current assets
- $9.5 million total current liabilities
- no revenue for the period
- $6.2 million net loss
To the considerable amount of net loss must be added the accumulated since inception deficit of $364 million. And in an often seen decision among pink sheet companies they have recently increased the maximum authorized number of common shares to 1.5 billion with the added twist of reverse split that is to be carried out before September 2014.
Investors should be relieved to know that the last pump campaign for GNBT is from the distant 2010. As with any company you should always take the promises for brighter future with a grain of salt. The stock has seen its fair share of volatility and jumping in without doing your own due diligence can be quite risky.
