OncoSec Medical Incorporated (OTCMKTS:ONCS) Surges Upwards
The biopharmaceutical company OncoSec Medical Incorporated (OTCMKTS:ONCS) put an end to their negative trend that has been going on since mid-May. Yesterday their stock rallied and finished the day at $0.27, or 11% up compared to the previous close. The increase of nearly 3 cents came on the back of truly massive traded volume coming just shy of 4 million shares.Year-to-date the company has had only 6 sessions when investor showed similar interest.
ONCS have been developing cancer treatments since the asset purchase agreement with Inovio Pharmaceuticals, Inc. back in March, 2011. And in the two years since then have made significant progress using their two major platforms – ImmunoPulse and NeoPulse. While the first is geared towards stimulating the immune system of the patient in order to target and destroy cancer cells, the latter uses the existing drug bleomycin to treat solid tumors. Currently ONCS has three ongoing clinical studies that are all in Phase II.
Like so many other development stage medical companies, ONCS have been acquiring the funds needed to support their operations through equity and debt financing. In the latest report filed with SEC they disclosed the following results:
- $7.3 million cash
- $7.4 million total current assets
- $2.4 million total current liabilities
- zero revenues since inception
- $1.7 million net loss
While the lack of revenues is normal and to be expected from a company with no complete product yet the impressive amount of cash reserves certainly isn’t. The problem is that the accumulated capital won’t be enough to ensure the operations of the company for the next twelve months. Which, looking at the past history of ONCS, means yet another private placement of shares. After the 32-for-1 forward split effected in 2011 they have a lot of room for new issues with the maximum authorized amount set to 3.2 billion. Traders should keep in mind that furhter dilution is guaranteed when contemplating investing in them.
The stock of ONCS is inherently volatile and reacts almost immediately to press releases. Later this month they are going to announce the interim data from one of the ongoing studies so a spike is to be expected if the results are positive. Having that in mind investors should decide on the appropriate time horizons for their actions.
During yesterday the stock of Xumanii, Inc. (OTCMKTS:XUII) started correcting despite being pumped by two of the most influential newsletters – Awesome Penny Stocks and Victory Mark. On the other hand Dakota Plains Holdings, Inc. (OTCBB:DAKP) showed a strong performance and regained all the ground they lost on Tuesday.
