InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) Bounces Back a Bit

After getting smacked 65% down in four devastating sessions last week, following months of steadier movement, Tuesday saw InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) rebound a little and close the session 18% up, at $1.41 per share.

The company was having a smashing year so far, with the stock climbing consistently and hitting a high that was 300% above the January prices. The main claim to fame NVIV has is their work on a grafted biopolymer scaffolding that should help treat people who suffered spinal cord injury. What put a spanner in the works for the company was a press release that informed of a shift in schedule due to the FDA tightening requirements for the early human tests of the product.

Last Tuesday NVIV informed that the first of five patient tests that will need to be run will be pushed back to Q1 of 2014. Additionally, the FDA demands a staggered testing mechanism, which means each individual patient will have to be monitored for three months before a new one can be enrolled, which will further delay the completion of the testing by at least 21 months, if all goes well. This considerable push back in time triggered a selling spree that was brought to a halt only yesterday.

Even though NVIV informed that it’s pursuing other projects in addition to the biopolymer graft, they are still in early development and the company will probably not be able to rake in revenue from them at an earlier point in time, which in turn means additional financing may be needed. With $23 million in cash on hand, NVIV is nowhere near a desperate situation but the change of plans seems to have scared traders, at least momentarily.

Yesterday’s 18% green close happened on strong volume and the stock managed to recover from its intra-day dip under $1.00 and close the day at $1.41, so investor confidence may not be shaken all that badly. Additionally, to the company’s credit, it climbed throughout 2013 without the assistance of any stock pumps.

Other penny stocks that were in the spotlight yesterday include Axxess Pharma, Inc. (OTCMKTS:AXXE) who, after a period of calm, slumped over 16%. Pollex, Inc. (OTCMKTS:PLLX) burst on stage out of nowhere and gained nearly 900% in a single session, going from $0.02 to $0.26, on 1.2 million shares traded, compared against a daily average of 365 shares before yesterday.