Phosphagenics (POH) enjoyed its best one-day surge in over 14 years today after management finally delivered something shareholders could cheer about.
The biotech that is developing through-the-skin drug delivery solution announced an exciting Phase I trial result using its oxymorphone patch for pain treatment.
The stock rallied 47.6% to its highest level in eight months of 15.5 cents on the news, and the uplift comes on very strong volumes.
It’s been a tough year for shareholders with the company plagued by scandal after its former chief executive Esra Ogru and five others were alleged to have misappropriated $5.7 million from the company over the past eight years.
Phosphagenics is confident that it will be able to recover most of the funds and its acting chief executive, Harry Rosen, said Ogru is cooperating with the company on this front, although some of the other alleged co-conspirators who were not named by the company are proving more difficult to deal with.
Rosen also confirmed today that the company is close to announcing a new chief executive and that he was pushing for a board renewal given the lax oversight.
The latest clinical result should also go some ways to reassure sceptics that Phosphagenics’ technology works. Fund managers that I have been speaking with over the years about Phosphagenics have voiced concern that the company’s technology had slim chances of success given that many have tried unsuccessfully to achieve a similar outcome in the past.
Phosphagenics is now looking to conduct a Phase II trial before looking for a large pharmaceutical company to partner to fund the final clinical trial.
The company is the best performing stock on the Uncapped 100 today.