Violeta Slavtchevska

OXiGENE, Inc. (NASDAQ:OXGN) Rising Up Again on the Expectations of the Results

by Violeta Slavtchevska November 4, 2011
The expectation of the results of OXiGENE, Inc. (NASDAQ:OXGN, OXGN message board) cancer drug candidate made the stock price of the company jump up again yesterday, although it could not break the $2 resistance. The press release came out after market close and now it will be interesting to follow which way OXGN will take as the news sounds only partially positive. OXGN.png

The session closed with a 6.40% increase in the share price at $1.83, while the highest price for the day was $1.97. Trading volume kept increasing according to the expectations and reached 1.87 million traded shares - a share turnover that is three times higher than the daily average for the past 30 days.

Despite the favorable constellation on the stock chart, the news from yesterday afternoon might have an unpredictable effect on OXGN stock value today. The results from the controlled Phase 2 study of ZYBRESTAT which has been tested on patients with advanced non-small cell lung cancer came out exactly at market close at 4:30 pm.

According to the press release, OXGN drug candidate showed better results when compared to standard chemotherapy only in patients with a tumor greater than 10cm. In this case, the medium overall survival was 14.2 months compared to 11 months for patients receiving standard therapy, yet the PR states that for the overall patient population no survival benefit for patients receiving ZYBRESTAT has been observed.Oxigene.jpg

At the end of August, OXGN share price fell down sharply after the company said that it would have to restructure its operations and reduce the working force in order to cut down the expenses. A couple of week after that, however, the management explained in a letter that the clinical studies would proceed according to the plan.

Also at that time, OXCG terminated its equity financing agreement under which $40 million worth of common stock had to be issued to an investor. That also had a positive effect on the stock price and it rose up from $1 to its current level.

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