Over three consecutive trading sessions the share price of IntelGenx Technologies Corp. (OTC:IGXT
, IGXT message board
) is falling down again. Today's session might be crucial as the market expects news from the FDA related to the approval of IGXT lead drug candidate.
Yesterday, IGXT closed the market again with a loss - 5.88% down from the previous close at $0.56. The trading volume was 1.5 million shares, which is a few times higher than the average. It looks like the upcoming session will show whether IGXT will actually reverse the downtrend that it has been following since July this year.
At the beginning of the month, IGXT got strong support from a $26,000 stock promotion with the help of which the share price jumped over the $0.6 resistance and even reached $0.74. Yet, an immediate decline followed, and continued on the news from this week and despite the positive coverage by a medical online portal called BioMedReports.Com and the CEO interview for the same website.
On Monday, IntelGenx Technologies announced that the FDA has changed the CPI-300 Prescription Drug User Fee Act ("PDUFA") date to from November 13, 2011 to November 10, 2011, which is today. If approved, CPI-300 would become the first marketable product entirely developed by IGXT, proving the potential of the company's technology.
Thus, the expected news today is significant as the FDA usually tries to complete the review of New Drug Applications by the PDUFA date. The filed yesterday financial results show only that IGXT had improved its cash position from $1.1 million at the end of last September to $3.3 million at the end of this September. On the other hand, the license fee revenues have declined.