In the past couple of days Cell Therapeutics (biotech ticker: CTIC) stock has jumped up over 10% with huge volume of 84 million shares but pulled back today of 5% of about 45 million shares in volume and closed at $1.65 of what appeared to be no news. Is this the case of anticipated news is the news? Most anticipates on news of CTIC application for FDA priority review of their flagship drug, Pixantron, which filed on June 24th 2009 to be announced. According to FDA policy, after the company filed for priority review, FDA will determine it’s destination within 45 days. Since CTIC filed Pixantron on June 24th that would make decision already be made already in the first week of August, but no news. Therefore, one can only speculate that news will come within 45 business days, since federal agency only operates on business day, so that would make it August 26th to be the last day for the FDA decision and the company to be announced within 3 days of the any news.
With huge volume recently and $30 million institution investment on board fueled even more speculations that FDA decision has already been made and that the company to announce the decision on Monday August 24th.
Thursday, August 20, 2009
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I think that the 10% jump was caused by the news of the $30 million institutional investment itself.
ReplyDeleteMany people are probably thinking that if institutions are ready to risk such a large sum of money on this company it must be worth investing in.
Theirs always some sort of news.
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