Generex Biotechnology, Inc. (OTC:GNBT) Spikes on Therapies Outlook

Penny stock circles see a lot of promise in the field of biotechnologies, and news in this area help lift tickers dramatically. Gererex Biotechnologies, Inc. (OTC:GNBT) spiked by 59.5% on Wednesday as the company released material news on its business. Our database still has not registered a pump for this ticker, so the rise is mostly due to messages from the company.

The stock has been shuffling upward in the past two weeks, but yesterday’s release of updates on the new Generex therapies and the outlook for next year truly boosted interest. Generex has been a stock battling the pressures of a prolonged research and development period and this has led to slow drop in price. Otherwise the company has been holding reasonable financial resources for years:

• $367,031 cash

• $3.68 million total assets

• $12.5 million total liabilities

• Zero revenues

We are yet to see today’s effect of a conference call explaining the progress of the AE37 therapy, developed by the Generex subsidiary, Antigen Express, Inc. Yesterday’s preliminary announcement was certainly effective. This, along with late-stage trials of a novel system for drug delivery are the main long-term promises of the company.

For a while, Generex was under the aegis of pharma giant Eli Lilly, but since then its patents in oral drug delivery and cancer immune therapy have been passed over by the giants. Given the conservative nature of big drug companies, this may be expected and Generex may still turn out a stellar treatment from its research efforts. This means, as experts predict, GNBT may move between extremes as estimates for marketing success become optimistic or pessimistic. In all, Generex remains, according to experts, a smart but long-term bid and daily fluctuations may lead to frightened selling.

The future of Generex may hold a spinoff of its cancer vaccine subsidiary, Antigen, and perhaps a new activation of the oral delivery system research. But the long-term bets may be preceded by falls, so do your own research before committing to a time period and any serious sum of money. The increased volume and spikes in price resemble the graph for Advanced Cell Technology, Inc. (OTC:ACTC), another company that attracts mostly with promises of upcoming novel treatments based on stem cells. But the increase in price does not come without corrections.

Although GNBT is not in active promotion, a Seeking Alpha article has been emailed to close to 300,000 followers subscribed to various investment idea recommendation services. This may have caused partially the spike in interest.