Yesterday, one of the most actively traded securities on the OTCQB market was Stellar Pharmaceuticals Inc. (USA) (OTC:SLXCF
, SLXCF message board
Unfortunately, unfavorable news related to the future of the company's development program resulted in a collapse for SLXCF share price.
The company's shares opened the market with a price decline.
Between the sessions, SLXCF tumbled down 82.05%, recording a new 52-week low. SLXCF closed at $0.395 per share, an unseen price level for the past two years.
The volume traded was the highest in the entire SLXCF trading history. More than 3.7 million shares changing hands confirmed the repricing of Stellar Pharmaceuticals shares. That was in unison with the news related to the failed results of the pilot study of Uracyst in America.
The company's statement
that Watson has elected not to proceed with Uracyst for the United States market maybe poured further fuel into the fire. Although both companies, Stellar Pharmaceuticals Inc. and Watson Pharma, Inc. (NYSE: WPI), plan to make further review and analysis of the data from the pilot study, investors based their investment decision yesterday on the future prospects of the program itself.
In a press release
, WPI Executive Vice President, Global Brands stated: "at this time we do not plan to allocate any additional resources to further pursue this development program."
Stellar Pharmaceuticals Inc. currently markets Uracyst directly in Canada and through license agreements in Denmark, Sweden, Norway, Finland, Iceland, the UK, Republic of Ireland, the Netherlands, Italy, Turkey, Portugal and Spain.
In addition to the United States, the company has licensing agreements in place for its product Uracyst in Israel, South Korea and China, territories which are all currently awaiting regulatory approval.