Phosphagenics' (POH) latest clinical trial announcement is more about bolstering confidence in management than it is about curing acne.
The biotech, which is developing a through-the-skin drug delivery technology, announced this morning that it has received ethics approval to start its phase II study to treat acne. The study is scheduled to be completed in the fourth quarter of 2013.
The news won’t bring much relief to the Uncapped 100 company though. Phosphagenics has been ensnarled in controversy since it suspended its chief executive, Esra Ogru, for invoicing and accounting irregularities.
Ogru has been the driving force behind Phosphagenics and management is very keen on showing that life can go on without her at the helm.
The acne study will be run by its recently appointed chief operating officer, Sally Kinrade. It was Ogru who managed to lure Kinrade away from GlaxoSmithKline (Australia), where Kinrade had spent the last 20 years.
While the latest management issue is likely to keep most investors away, Phosphagenics is facing a game-changing year. One of the key re-rating events is the outcome of the United States Department of Agriculture (USDA) trial.
It’s worth noting that the trial is funded and managed by the USDA.
Phosphagenics gained 0.5 cents to 10.5 cents this morning.