Novelos Therapeutics (OTC: NVLT) experienced a shocking fall yesterday, dropping a startling 32.0%.<\/p>\n
The drop comes after a 5.4 million public offering by the company. The offering included 5,420,800 unites at $1.00 each, with each unit consisting of one share of the common stock; additionally, the offering included a Class A Warrant with a five-year term to purchase one-half of shares at $1.25 and a Class B Warrant with a 90-day term to exercise the stocks at, or around $1.00. Reuters covered this transaction, but no one expected them to falter as much as they have.<\/p>\n
Ironically, the day began on a hopeful note for Novelos Therapeutics.<\/p>\n
Prior to the announcement of the public shares, the company had established itself as a growing stock. It reached a high of $2.00 on April 26th, 2012 and then another peak of $1.70 on June 5th, 2012. Experts were looking to see the company\u2019s stock continually increase as more news was unveiled of successful drug trials. This drop isn\u2019t completely surprising – not like the recent avalanche of AGR Tools (AGRT). On May 22nd, 2012 Novelos fell to a two month low of $1.20, suggesting that, with all things taken into consideration, the drug stock market wasn\u2019t completely stable.<\/p>\n
Novelos Therapeutics is a pharmaceutical company that focuses on the development of new drugs for treating and diagnosing cancer. They are known for their three cancer-targeted compounds, which\u00a0directly attack cancer cells, while leaving normal cells virtually unharmed. The pursuit of such highly-efficient cancer drugs is the holy grail of cancer research, making the company’s penny stock very interesting to watch.<\/p>\n
On May 15th, 2012, the company announced that it had successfully completed the first stage of its multiphase drug dosing trial of its new cancer-targeted radio therapeutic compound. For the less scientifically inclined among us, what this drug essentially does is attack cancer cells in patients with advanced solid tumours. The company’s lead compound, NOV-002, has already been administered in over 1,000 cancer patients in clinical trials across the United States.<\/p>\n
Currently, the company is in phase 2 of its trial.<\/p>\n