Hana Biosciences, Inc. (OTC:HNAB
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) share price is recovering from the humongous drop that occurred last Friday, but it doesn't necessarily mean the stock will return to the recent highs anytime soon.
Although it can provide an opportunity to add cheaper shares, the recent pullback shows the buyers were unconvinced of further gains and took their profits around $0.7 and below. The cause for this selloff came partially from the reaction to the recently published quarterly results, even though the update contained some upside worthy disclosures as well.
The good thing is the company retains adequate capital to run on and has already disclosed the amount available-for-sale securities to be sold for future gains. On the bad side, their liabilities have long topped assets and most of them come from the various notes and rights given to investors. Conversion of debt instruments to common stock could lead to dramatic changes in price and hurt long term stockholders.
In the commentary, that came along with the quarterly update, management states the NDA submission for Marqibo compound is currently planned to happen in the first half of 2011. The company is now aiming to submit all 5 modules, that make up the NDA submission, at once and all of them should be prepared by the end of 2010.
Despite the clear timeline and healthy financial position, investors' expectations should be reasonable as share prices might not significantly move up until the NDA submission for Marqibo is truly at hand. Even then, the company will still have to commence Phase III clinical trial, which can disprove the effectiveness of the compound.