Gediminas Jasionis

Adolor Corporation (NASDAQ:ADLR) Is Not Ready To Go Up

by Gediminas Jasionis July 7, 2010
ADLR_chart.pngThe end of the daily buying on Tuesday bid on hopes for a possible price push up for Adolor Corporation (NASDAQ:ADLR), though there is no reason to get everything invested here, as facts give more merit to continued weakness.

Lately, the stock has been attracting considerably increased attention from traders. As the price is going down, more speculations concentrate on the possible bottom bounce. More than half a month has passed since Adolor announced failed trial results on their osteoarthritis cures and as expected, the negative effect is wearing off.

Yet adding the facts together, the penny stock deserves to trade near the existing lows:

• Vague top line growth
• Huge, repetitive losses
• Failed osteoarthritis cure trials basically just burned the cash
• Losses eating away the balance sheet
• Chief Medical Officer recently left the company

Adolor_logo.jpgWith Pfizer partnered osteoarthritis pain relief trials failed, the company is trying to get the same cure working for post-herpetic neuralgia patients, but the first results are only due in early 2011. Adolor is only left with phase 1 development of substances for Opioid Bowel Dysfunction, which will need time to be tested, and the cash will run out in 2011. Existing product sales hardly cover the R&D expenses and cannot sustain the company.

Comments 1

1. Guest
January 08, 2008, 11:50PM

Quotes Trying to contact Peter Johnson, childhood friend.

Ward Spring

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