Shares of AEterna Zentaris Inc. (NASDAQ: AEZS) surged more than 25% in today�s trading. Canada-based AEterna Zenataris is a drug development company specializing in oncology and endocrine therapy. The small-cap stock closed 24.19% higher at $1.54, after reaching a high of $1.61 in today�s trading. Volume was up from daily average of 3.93 million to 22.02 million.
Today�s spike in the small-cap stock comes on the back of announcement made by the company that it has received an orphan-drug designation for AEZS-108 from the FDA. AEZS-108, which is in phase 2 testing, currently, is being developed for the treatment of ovarian cancer. Apart from AEZS-108, the company has five more drugs in pre-clinical stage, two in phase 1, one in phase 2 and two in phase 3. The company has one drug, Cetrotide, which is currently being marketed.
The company�s product pipeline looks solid, and today�s announcement was obviously a driving point for the company. In 2009, the company reported a loss of $24.7 million on revenue of $63.2 million. The company spent $43.8 million on R&D in 2009.
On April 20, the company had reported the completion of a registered direct offering of US $15 million of units of common shares and common share purchase warrants to certain institutional investors. The company received net proceeds of $13.7 million from the offering.
Currently, the small-cap stock has two Buy ratings, One Outperform rating, two Hold ratings and one Underperform rating. The stock has been volatile in the past one year, with a 52-week range of $0.75-$3.25. It has beta of 1.51, which is high and again implies volatility. Currently, the small-cap stock is trading above its 50-day and 200-day moving averages.
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