The shares of Nile Therapeutics, Inc. (PINK:NLTX)
took a huge nosedive yesterday as the developer of novel products for treating cardiovascular and renal diseases published a full-blown 10-K report for the 2011 fiscal year.
Yesterday, NLTX slumped by 32% closing trade at $0.34, its lowest close since August 2010. A total of 1.034 million shares of common NLTX stock changed hands, setting a 52-week record.
Accidentally or not, the company's dismal market performance occurred after the publication of its annual 10-K report. According to the latter, NLTX closed the 12-month period ended Dec. 31, 2011 with:
- $1.04M in cash, down 69% on an annual basis;
- net working capital of $0.77M as opposed to $2.53M a/o Dec. 31, 2010;
- net loss of $4.88M vs. $6.03M incurred in the preceding year.
As negative as these figures may seem, they could hardly take investors by surprise. Indeed, NLTX does have two product candidates in the works. However, both of them are in early stages of development, which means that the company has a long way to go before releasing them on the market. To do so, it will not only need substantial external capital, but also sufficient time to perform the necessary clinical studies.
NLTX is by far not the first business trying to make a breakthrough in cardiovascular medicine. Nor will it be the last one to jump on the bandwagon. Yet, its current financial position paints a rather gloomy picture of its future.