The share price of Danish biotech firm has been following a somewhat switchback course this year, writes financial daily newspaper Børsen. Having announced in May this year the abandonment of a large-scale Phase III trial of its drug candidate GV1001 in pancreatic cancer after a preliminary analysis showed no survival benefit, the company's share price dropped significantly, and stayed dropped.
Until about a week ago that is. Since then, despite there being nothing in the way of exciting news coming from Pharmexa, the share price has risen 89% back up to its May level, including an 18% hike on a single day (Thursday) last week.
According to Børsen's sources, the sudden sharpening of interest in Pharmexa shares is down to private speculators having a hunch that the company will become an acquisition target in the very near future. Pharmexa had a change of CEO a month ago, and in a press release announced a 40% reduction of its workforce 'in order to reduce cash burn'.
Pharmexa specialises in vaccines for the treatment of cancer, and serious chronic and infectious diseases. The company has collaborative agreements with H. Lundbeck, GENimmune, IDM Pharma and Bavarian Nordic. Pharmexa has operations in Denmark, Norway and the US, and is listed on the OMX Nordic Exchange Copenhagen.