Dallas, Texas 10/11/2013 (Financialstrend) – On October 2, Zalicus Inc (NASDAQ:ZLCS) announced that it is offering a reverse stock split of its outstanding shares. This saw the company executing a 1 for 6 reverse stock splits. This came into effect on October 3. Total outstanding shares add up to 21 million post the reverse split. The move was primarily necessitated in order to comply with NASDAQ’s minimum listing requirements. Post the announcement, the stock dipped by close to 12%.
The weakness in the stock so close to an announcement which carried positive connotations was surprising to analysts tracking bio firm stocks. The announcement in question was issued on September 27. The drug firm indicated that it had received Orphan drug designation for its “postherpetic neuralgia” drug. Post the announcement the stock of the drug maker had jumped up by close to 7.8%. In fact ZLCS stock has shed close to 24% during last week’s trading.
In spite of the lack of investor confidence in the stock, its valuation over the last 30 days is up 3.6% and by a impressive 59% over the last 90 days. It has a market cap of $103 million with net accumulated loss of $39 million over the past 12 months. It has also recorded sales of close to $14.9 million over the previous 12 months trailing period. This indicates an impressive jump of close to 34% in sales over a quarter on quarter compare.
As of close of business on October 10, the stock has shed close to 2.44% compared to previous day close price. It ended the day’s trading at $4.79 per share. This translates to a 42% dip in value over its 52 week high pricing and an 85% increase over its 52 week low pricing. Analysts believe the stock has the potential to command price of $9 per share over the next 4 quarters.