Has Repros Found A Savior? (RPRX)
Repros Therapeutics Inc. (NASDAQ: RPRX) has seen an explosion in its trading this morning. This comes on the heels of recent days where there was a risk that the company might effectively be bankrupt. It had to engage a law firm to assist the company to negotiate a reduction in amounts owed to its vendors.
It had only $2.7 million in cash and cash equivalents a week ago and its accrued expenses were just over $7.5 million. To curb expenses, Repros has also cut compensation by half for all salaried employees after reporting earlier in the month that it had stopped trials of its Proellex drug citing patient safety after reports of higher liver enzymes and after an FDA clinical hold.
To add in another wrench, the firm has also been target of a class action suit and its Androxal drug trial for raising testosterone levels may not have adequate funding.
The 52-week trading range here is $0.65 to $13.94, and its chart looks like a downward staircase, up until this morning. We now have shares up 60% at $1.10 on over 1.8 million shares. It seems as though someone or a group of someones thinks that the company has either lined up some financing or has secured a partner for its other targets.
JON C. OGG
AUGUST 21, 2009
