Todor Pichurov

OncoSec Medical, Inc. (OTCMKTS:ONCS) Drops Further

by Todor Pichurov September 12, 2013
0ONCS_chart.pngYesterday the stock of OncoSec Medical, Inc. (OTCMKTS:ONCS, ONCS message board) descended 5% down the charts, closing at $0.30 per share. The ticker went through a significant surge last week but it was largely wiped out by the last two red sessions, on about equal share volume.

ONCS is a development stage biopharma company that is working on melanoma treatment therapies. ONCS launched into active operation after acquiring assets from Inovio Pharma, Inc. in 2011. The company is currently in Phase II trials, with final results expected to surface within about a year's time.

ONCS has a relatively comfortable amount of cash on hand according to its latest quarterly report and while incurring seven-digit losses due to its lack of revenue and research expenses, it's not in a position that one could call dire. Still, there are a few things to keep in mind when looking at the stock.

While the stock has generally increased in price year-to-date, it's been a rollercoaster ride of wild swings and retraces. Thankfully, the red slides were not caused by stock promotions, as pumpers have managed stayed away from the ticker. This is not entirely true for other companies that have an indirect connection to ONCS through Mr. Avtar Dhillon, who serves as chairman of the board at ONCS. He is also listed as chairman at biopharma OTC company Arch Therapeutics, Inc. (OTCBB:ARTH).

ARTH does not boast the pump-free track record of ONCS, as it was hit by a big-time promotional stock pump campaign that included emails as well as a landing page. After a few huge green days the million-dollar pump sent the stock spiraling downward, with millions of investor dollars flushed down the drain as the ticker went from $1.30 to under $0.50.

2ARTH_chart.pngThis in no way means a similar fate awaits ONCS but it casts a bit of a shadow on the company's profile. Traders should also keep in mind that there's quite a bit of time until final trial results are in and this may be both a blessing and a curse as the stock may fling itself either way depending on the outcome.

Another medical OTC stock was even less fortunate than ONCS yesterday - InVivo Therapeutics Holdings Corp. (OTCBB:NVIV) slumped 10% to a close of $1.40 per share on decreasing volume as news of a personnel changes turned a green tide around on Tuesday.

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