This was due to a company announcement stating that the FDA had cleared the company to initiate a phase III trial for its anticancer candidate PI-88.
But what was also very encouraging was the approval by the FDA to allow the company to manufacture PI-88 in-house, saving Progen as much as $7.8 million Australian dollars in outsourcing fees.
That figure is significant to a small biotech firm that is only worth $260 million US, and this is after the huge gains.
This extreme trading activity reminds me of Acorda Therapeutics (NASDAQ:ACOR) which saw its stock price jump by almost 4 times in one day back in September after the company came out and announced that a set of data from its phase III clinical trial was positive. The stock continued its upward climb, doubling in price since that big day.
Could Progen stock see similar gains? Why not! A small biotech firm with exciting research, small market cap, and positive news could easily see more positive price movement.
PGLA 1-yr chart: