Boston, MA 01/15/2013 (wallstreetpr) – After continuously recording a gain for consecutive trading sessions, the shares of Rexahn Pharmaceuticals, Inc. (NYSEMKT:RNN) shed more than 27% of the gains on Tuesday. The stock closed at $1.16 after loosing 44 cents in value.
Soared High On Analysts Note
The stock has recorded gains of as much as 150% in the previous three trading sessions on account of positive feedback from the Roth Capital Markets analysts. The analyst, Joe Pantiginis said in his note that the company is perceived as much more focused and re-tooled now,with a clear objective to develop cancer drugs. The action supporting the analysis is the price target raised to $3 for the company and being assigned a ‘Buy’ rating.
Lost Due To Profit Taking
However, the huge gains soon enough melted away post the company’s announcement of starting a clinical Phase-II study of its drug, Archexin. On Tuesday, the company stated that it is pursuing a PhaseIIa clinical trial of Archexin in order to study its safety and efficacy. The drug, Archexin,which acts as a specific inhibitor to cancer cells, will be tested in patients with medical conditions of metastatic renal cell carcinoma (RCC). A detailed analysis of the Metastatic RCC indicates an expanding market opportunity, as the number of patients with the condition are reported to be 90,000 globally, which means a huge market size of $6 billion. Reports further highlight that the patients of Metastatic RCC, who receive standard care treatment often have a poor survival ratio, which is less than 2 years. It is to be noted that the drug has already received U.S. Food and Drug administration’s (FDA) grant of Orphan Drug Designation for the metastatic RCC indication along with four other types of cancers, which includes pancreatic cancer.
Therefore, mostly seen as headstrong in its drug trials, Rexahn looks interesting and the loss during the last trading session is largely seen as an outcome of profit booking by the investors.
