Violeta Slavtchevska

Fibrocell Science Inc. (OTC:FCSC) Jumps Up Again Within the Higher Range

by Violeta Slavtchevska April 19, 2011
Yesterday, the stock of Fibrocell Science Inc. (OTC:FCSC, FCSC message board) got a substantial increase in its share price and accumulated extraordinary volume for no evident reason. Investors might be looking for positive news from the company, as the chart shows that FCSC has been climbing up this year and the 52-week high of $1.01 also does not look so far away.54FCSC.png

FCSC closed the last session with a 10% jump in the share price to $0.88 and the trading volume reached 1.23 million shares. The next resistance is at $0.89 and some technical indicators are positive.

Last Wednesday, Fibrocell Science filed another amendment to its prospectus related to the resale of shares by certain shareholders. According to that last filing, the shares that may be offered for sale are: 6.35 million representing 110% of the shares underlying the Series A convertible preferred stock of FCSC and 3.72 million shares issuable upon the exercise of certain warrants. The company will receive cash only if the stockholders decide to exercise the warrants.

A few weeks ago Fibrocell Science announced that it has submitted a final study report to the FDA for a completed, six-month histological study examining skin after injections of azficel-T. The company has a PDUFA action date of June 22, 2011 for this Biologics License Application (BLA) and azficel-T is FCSC most advanced product candidate for the treatment of nasolabial folds/wrinkles.Fibrocell_Science.jpg

Despite all difficulties, the company's latest annual report gave some positive signals too. The current financial condition has been improved and FCSC had as of March 24, 2011 $3.4 million in cash and equivalents and current liabilities of only $0.6 million. Fibrocell Science looks optimistic about its future development and even plans the manufacturing and the marketing after the FDA approval.

FCSC states that it will purchase manufacturing equipment and prepare a marketing campaign for the launch of the new product. Though, apart from the still missing FDA approval, the company will also have to again refer to the capital markets in order to fund its future operations.

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