diaDexus, Inc. (OTCMKTS:DDXS) Attempts Recovery
Yesterday the share price of diaDexus, Inc. (OTCMKTS:DDXS) climbed nearly 22% to a close of $0.95. The surge comes hot on the heels of Wednesday’s devastating drop that sliced more than half of the company’s price in a single session.
The company is a medical OTC entity, most famous for its PLAC Test – a blood test diagnosing increased risk of heart attack and stroke. After two weeks of silence, this Tuesday DDXS came up with an update regarding the results of Phase 3 STABILITY trials conducted by GlaxoSmithKline (GSK) – one of the largest medical companies in the world today.
GSK informed that their evaluation of the Lp-PLA2 inhibitor failed to meet its primary endpoint measure. Lp-PLA2 is a vascular inflammatory marker evaluated by the PLAC test. DDXS patented research was used in the evaluation.
The tremendous drop that was triggered by the news is very likely an overreaction. Traders compared the cringe to a reaction proportionate to DDXS filing for bankruptcy, which it did not. In fact, as per its latest report the company is still in a very respectable position. DDXS listed over 12 million in cash and a year-over-year increase of revenues of over $1 million, even if the bottom line was still net loss.
The ticker may be on the path to recovery, even if yesterday’s green session made up only a small fraction of Tuesday’s crash. All believers in the long-term success of the company now have the chance to load up on shares at a massive discount compared to the recent price levels. Whether DDXS has what it takes to claw its way back up to over $1.50 per share remains to be seen.
Other biopharma OTC companies that made splashes yesterday include Titan Pharmaceuticals, Inc. (OTCBB:TTNP) who nearly wiped out the gains made over their Tuesday climb, closing 11% down. Biozone Pharmaceuticals, Inc. (OTCBB:BZNE) probably scared a few people, dropping 66% intra-day but managed to clamber back up to a close just 3% down, on its biggest volume ever.