CytoDyn Inc (OTCMKTS:CYDY) Picks Up in Volume
In yesterday’s session CytoDyn Inc (OTCMKTS:CYDY) shifted its heaviest daily share volume for the past month. The stock found itself 9.8% up by the closing bell, making up for Monday’s drop almost in full. CYDY stopped at $0.78 by the end of the session.
CytoDyn is a biotech stock, focused on the development of products that seek to counter immune deficiency viruses. With HIV being the most prominent among those, it’s only natural that the company’s main effort is also focused on that virus. The product CYDY is working on in relation to HIV is called the PRO 140.
In early August 2015 the company announced the commencement of Phase 3 trials for the PRO 140. Somewhat disturbingly, on the same day CYDY dropped 5%. It’s not that the beginning of Phase 3 means imminent commercialization but a drop on the day when big positive news hits the wire is a little troubling.
In late September CYDY announced that a group of patients who received PRO 140 for a full twelve months displayed “viral load suppression” over this extended period of time. Things seem to be looking good for the company but the stock has been for the most part flying under the radar, with relatively low trading volumes.
Here is how CYDY‘s latest available financial report looks like in a nutshell:
- $1 million in cash
- $10 million in current liabilities
- zero revenues since inception
- $25 million in annual net loss
With CYDY‘s fiscal year ending in May, its next report is due in mid-October. Meanwhile, the company has put up a considerable number of new filings. Those include an 8-K revealing the sale of 4.7 million shares priced at $0.75 and warrants for the purchase of 2.3 million more, again exercisable at $0.75. This was followed by another 8-K detailing the sale of an additional 5 million shares at $0.75 a pop and an extra 2.5 million warrants with the same exercise price.
In early August, an expensive licensing agreement with Lonza Sales AG was signed for the use of cell lines to manufacture new PRO 140 material. The first half of the payment amounts to $930,000 and should be made by mid-December 2015.
In early September CYDY filed an S-1 for the registration of 18 million shares, including the sum of 9.7 million shares from the two 8-K filings described above, as well as the 4.8 million shares associated with the warrants. Whether this means the sale of those shares on the open market is imminent remains to be seen.
