Fibrocell Science, Inc. (OTC:FCSC)
closed last week on a high note as it went up for three sessions in a row. Nevertheless, FCSC has not made up for the huge slump which occurred last Monday.
Last Thursday, FCSC came in at $0.35, up 6.06% from its previous close with almost 870 thousand shares changing hands, or 18% higher than the daily average volume. Prior to this session, FSCS had already gone up 6.45% on Wednesday and a staggering 106.67% on Tuesday. All this happened after the company's stock crashed on Monday losing 63% in value.
As it is, the root of all evil that occurred last Monday is an investor conference call. Originally scheduled for Apr. 2, it ended up being postponed to the following day at the very last minute, raising suspicions about the real motive behind the rescheduling. As it turned out, everything started getting back to normal on Apr 3 after the end of the business call.
Headquartered in Exton, PA, Fibrocell Science, Inc. is a development stage biotech company focused on the development of new skin and tissue rejuvenation products. Last June, the company's LAVIV became the very first personalized cell therapy to get an FDA approval for aesthetic use. Targeted at fold wrinkles in adults, the product is now distributed nationwide via certified dermatologists and plastic surgeons.
Even though FCSC closed the 2011 fiscal year with a net working capital of $2.9 million, it does not change the fact that the company's financial state is in dire straits. On the one hand, FSCS is highly leveraged as its long-term debt exceeds $16.5 million while its equity is a negative. On the other hand, the company incurred a total net loss of $31.3 million for the 12-month period ended Dec. 31, 2011.
In a nutshell, no matter how successful FCSC's LAVIV product could potentially get, it will hardly make any breakthrough without a huge external financial injection. In the light of the numbers mentioned above, the latter could end up being a fairly difficult mission to accomplish.