Yesterday Accentia Biopharmaceuticals, Inc. (PINK:ABPI) gained 8% for no apparent reason. With approximately 388 thousand shares traded, ABPI closed at $0.540, regaining almost everything it had lost on Apr. 11.
The company has not released any news after Mar. 30. Then Biovest Internationa Inc, a majority-owned subsidiary of ABPI, announced a collaboration agreement with Ordway Research Institute. Biovest and Ordway plan to jointly conduct viral growth studies using Biovests's proprietary systems. The PR drove the price and volume up then, but there is nothing to explain yesterday's move.
ABPI had been operating as a debtor-in-possession since November 10, 2008, until it emerged from Chapter 11 protection on November 17, 2010. On that day the stock suffered a 23% loss and dropped below a dollar.
Since then it has been slowly declining further, despite the conviction of Samuel S. Duffey, President and General Counsel for both Accentia and Biovest at the time. Mr. Duffey claimed both companies had emerged as much stronger and more financially secure organizations. The numbers in the most recent, available 10-Q, however, are these:
It may be too early to say how well the reorganization plan has worked, but it seems ABPI has some serious funding problems at this point. Additionally, trade suggests investors may not be certain about the company and its potential.