RXI Pharmaceuticals, Corp. (OTC:RXII) Retreats After Two Days of Selling
As RXI Pharmaceuticals, Corp. (OTC:RXII) advances by leaps and bounds, it took one of its not unusual corrections, slumping down 18% on Wednesday’s trading. The company does not rely on a paid promotion, so investor sentiment is key to its latest series of climbing. 
The development of viable and marketable therapies using RNA technology has left RXI with the following financial strengths and weaknesses: 
- $6.2 million cash
- $6.7 million total assets
- $1.4 million current liabilities
- $57,000 revenue from grants
- $1.6 million operating loss
So far, the company has held up at 24 cents, based on promises of an upcoming breakthrough, one of the strongest appeals of a biopharmaceutical stock. The latest brief mention of RXII came in a review by Small Cap Specialists on March 15th, and by now some of the glitz has worn out. RXII is a former NASDAQ company, pushed into OTC territory by the long wait for a marker breakthrough. As such, it was briefly mentioned in a promotional campaign back in 2010 and since then has relied more on press releases.
Pharmaceutical companies started the year strong, but met with heavy selling sooner or later. As 2013 was opened with high promises for new therapies and research, any failure to deliver on the promises heavily compromised the stocks. Such was the recent case with Titan Pharmaceuticals, Inc. (OTC:TTNP), a researcher in the area of anti-psychotic drugs. Later today the FDA will give further details for considering the latest application not adequately strong to treat the proposed condition.
AP Pharma, Inc. (OTC:APPA) shows a similar move, gaining rapidly in January, but breaking the climb and so far moving without a clear direction.
While the penny stocks with pharmaceutical businesses are relatively more solid, still their trends are disproportionate to the results of their business and you should think twice before joining any of the fast-moving tickers.
