Prima Biomed Ltd. (NASDAQ:PBMD) First Skyrockets, Then Corrects Value

[[tagnumber 0]][[tagnumber 1]]After spending more than a year within the $0.50–$1.50 range on the Nasdaq, the stock of Prima Biomed Ltd. (NASDAQ:PBMD) skyrocketed last week after the Australian developer of cancer treatment solutions published some optimistic updates on one of its current clinical trials.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 4]]While you could buy PBMD shares at around $0.50 at the beginning of last week, this is no longer the case as it only took Prima‘s stock two days to increase its market value by a factor of ten. Of course, PBMD shares have since undergone a 50% downward correction and are currently traded around the $3.00 benchmark.[[tagnumber 2]] [[tagnumber 0]]A few days before revealing the good results of its Phase II ovarian cancer clinical study following five long years of collecting data, the Australian biotech secured the equivalent of an A$15 million capital injection from Ridgeback Capital Investments, an American investor in health care businesses, with the intention of channelling this money into a couple of brand–new trials. So far, so good. Investors gave this a rather lukewarm response, though. Under the terms of the agreement, Ridgeback could potentially acquire about 750 million shares of common PBMD stock (if it were to exercise all of the convertbile notes it will receive in relation to the transaction). At the time of the announcement, PBMD shares were traded at A$0.023 per share on the ASX and $0.55 on the Nasdaq.[[tagnumber 2]] [[tagnumber 0]]It was not until the positive Phase II results of PBMD‘s ovarian cancer study showing a significant improvement of patients‘ survival rate that the stock really took off, going from $0.51 $5.91 on the Nasdaq (May 20) and from A$0.02 to A$0.16 on the ASX the following day. So why did the value of this stock got cut in half only a few days later?[[tagnumber 2]] [[tagnumber 0]]As much as there is nothing wrong with good trials, Prima Biomed still has a long way to go before crossing the finish line as its CVac cellular therapy is still two more phases away from full commercialization. This will most likely go on for months ahead and the company might face a few challenges along the way. How management will cope with potential bumps will have a huge impact on PBMD’s value in a longer time frame.[[tagnumber 2]] [[tagnumber 0]]As we wrap this story up, we see that PBMD’s managers have just announced has taken steps to commercialize its proprietary iCan software platform, i.e the one used for the CVac therapy, worldwide through the help of Database Integrations, Inc., a US–based entity responsible for creating iCan in accordance with the specifications set out by Prima Biomed. However, PBMD looks bound to lose some more value today as its stock is down 9 per cent a few minutes before market close.[[tagnumber 2]]