Shares in biotech micro-cap Oxygen Biotherapeutics (OXBT) continued to skyrocket on Monday, climbing almost 60 percent in early trading. This comes after last week saw the company’s shares take off on news that a meta-analysis of 14 studies by Duke University showed that cardiac drug levosimendan reduced patient mortality.
Shares Continue to Climb
Shares in Oxygen were already on the rise last week after the announcement of the results of the Duke study. Shares climbed 87.33 percent Wednesday on a steady climb that gained steam as the day wore on, and kept climbing as the week wore on. Gains slowed, though, as shares gained a meager 8.19 percent on Halloween and 6.25 percent on Friday. But the boost on Wednesday still meant shares came just short of doubling in five days on gains of 98.16 percent that took the share price from $1.63 to $3.30.
Monday’s spike has been substantial, taking the share price as high as $5.39 before settling in to gains just under 60 percent by late afternoon.
Any Shorts Left?
While Wednesday had the look of a positive news piece prompting a short squeeze, it’s hard to imagine there are many short positions left for Oxygen after today’s bounce. Now, the company’s stock is up 244 percent since last Wednesday. It seems possible that some straggling short positions were getting out on Monday, prompting the big move. However, there was no specific news item that seemed to explain why shares spiked again so significantly on Monday.
Oxygen’s recent gains can be attributed to the apparent value of levosimendan, which it acquired as part of a deal with Phyxius Pharma on October 21. The deal also resulted in Phyxius co-founder and CEO John Kelley stepping in as Oxygen’s new CEO. He must be enjoying the ride so far.
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