Dallas, Texas 01/27/2014 (Financialstrend) – The $31.17 million market capped biotech firm Cleveland BioLabs, Inc. (NASDAQ:CBLI) saw its market valuation go down by a significant 8 percent during trading on 24th January. This adds to the huge 42 percent depreciation the share holders suffered in the valuation of their holding in the past one week.
The trigger for the significant downward movement in the stock was the downgrading of this small cap biotech firm by rating agency Oppenheimer, which has been downgraded to perform from earlier outperform on 24th January. This news led the investors to sell off the stock, resulting in its price points coming down to $0.69 from previous $0.75 per share.
In other negative news that has been buffeting the underperforming stock of Cleveland BioLabs, Inc. (NASDAQ:CBLI) was its 23rd January announcement indicating that its negotiations with the Biomedical Advanced Research and Development Authority has been called off. The drug maker had been exploring options to continue its existing arrangement of developing “Entolimod” as a preventive application for patients suffering from medical radiation. The primary reason being cited for the discontinuation of the negotiation is the lack of funds to pursue the project further. Putting a brave face in spite of this set back, Cleveland BioLabs, Inc. (NASDAQ:CBLI) Chief Executive Officer Yakov Kogan, Ph.D., MBA, has been quoted to have said that, “We are moving forward with our plan to pursue pre-Emergency Use Authorization, an essential next step. In addition, we continue to develop our novel oncology drug candidates.”
This clinical-stage biotech firm has been concentrating on developing a huge pipeline of new compounds designed to treat oncology related ailment and provide succour to patients suffering from radiation injury. It had developed target drug “Entolimod” as an antidote for radiation exposure and as a cancer treatment. The firm operates through its three subs, “Incuron, LLC, BioLabs 612, LLC and Panacela Labs, Inc.”.