InSite Vision, Inc. (OTCMKTS:INSV) Sold Off After Bad Drug Trial News
If you like the idea of overhanging disaster, then pharmaceutical stocks are the right choice. Fueled by hope, and immediately cut down when a drug does not receive a green light- yet another time the scenario played out. This time it is InSite Vision, Inc. (OTCMKTS:INSV), which failed in the last circle of trials for its upcoming drug proposal. 
The punishment was immediate- the ticker shed more than 35% on record selling volumes, as investors sold off nearly 5 million shares. INSV stands at 21 cents, and Wednesday’s trade reached $790,000 trading volumes. 
INSV tried to cheer up the markets today with news of upcoming financial results, so we’ll see if the ticker recovers until the expected release on August 8th. The latest filings that came in reveal:
- $1.4 million cash
- $12.8 million total assets
- $56.3 million total liabilities
- $5.21 million revenues
- $1.9 million quarterly net loss
This is a typical balance sheet for a pharmaceutical company that bets on future patents and marketing success. The burden of past research is visible in debt and losses, so any news of a potentially lucrative therapy are eagerly awaited. Still, the company is passed over by paid promoters, and since 2011 has been mostly invisible, a selection that did not pass the view of many investors.
We have not covered the ticker since 2011, and the sudden activity may be a blessing in disguise, bringing t
he light of attention on INSV again for a while. After the correction, the next days may reveal an interesting trading sequence.
The story of INSV recalls that of AP Pharma, Inc. (OTCBB:APPA), which after negative news on its latest patentable drug lost half its value, and is struggling to recover. The stakes for Titan Pharmaceuticals, Inc. (OTCBB:TTNP) were even higher, as the company crashed by 75% on a negative pronouncement from the FDA a few months back. Slowly, TTNP is also gaining a comeback momentum.
There is speculation that the latest drug trial for INSV is not conclusive of the drug’s effectiveness, and there may be a repetition with a new study design that would reflect more truthfully the effect of AzaSite Plus and DexaSite treatments.
There is a general resurgence of biopharmaceutical stocks among small cap tickers, and INSV may find a place among the more active selections. Companies in this group vary in their quality of business and stock market volatility, so it is best to remain alert of the risk of sudden reversals, and not invest unaffordable sums.
