Shares of Panbela Therapeutics Inc. skyrocketed again Tuesday, following positive news from the U.S. Food and Drug Administration regarding a treatment for child cancer.
The biopharmaceutical company
PBLA,
said Monday that the FDA approved US WorldMeds’ new drug application for the use of eflornithine as a therapy for high-risk patients with neuroblastoma — a rare cancer originating from immature nerve cells that contributes to nearly 15% of pediatric cancer deaths.
Panbela had sold some of its assets in its eflornithine pediatric neuroblastoma program to US WorldMeds in July, in a deal that entitles Panbela payments upon completion of milestones related to development, approval and sales.
“This approval is a prerequisite for considerable development milestone payments for Panbela as US WorldMeds continues its efforts to bring eflornithine to the market,” said Panbela Chief Executive Jennifer Simpson.
Panbela’s stock soared 60.4% in midday trading Tuesday, after blasting 121% higher on Monday, to mark a two-day gain of 254%.
Trading volume exploded to a record 146.9 million shares on Monday, and was at 74.1 million shares around midday on Tuesday, compared with the full-day average of about 5.2 million shares.
“This approval highlights the role polyamines can play in cancer therapy as we look forward to data from our ongoing programs in metastatic pancreatic cancer, colorectal cancer, non-small-cell lung cancer and prostate cancer, and the advancement of pre-clinical programs in ovarian and multiple myeloma,” Simpson said.
Panbela has been disclosing ‘going concern’ warnings for years
Yet prior to the stock’s big two-day rally, things haven’t been so rosy for the company.
Panbela’s quarterly and annual filings have for years included language stating there was “substantial doubt” regarding the company’s ability to continue as a going concern.
The company has implemented two reverse stock splits this year — 1-for-40 in January and 1-for-30 in June — that effectively multiplied the stock price by 1,200, in an effort to regain compliance with the Nasdaq’s minimum-bid listing requirement of $1. And still, the stock closed at a record low of 45.7 cents on Friday.
At Friday’s close, the stock had lost 99.5% year to date.
Despite the stock’s “meme”-like rally this week, short interest, or bearish bets against the stock, pales in comparison to that of original “meme” stocks.
Based on the latest exchange data, short interest in Panbela’s stock represented 0.86% of the public float, which is the number of shares available for trading by the public. In comparison, short interest in GameStop Corp.’s stock
GME,
was 23.88% of its public float, while short interest in shares of AMC Entertainment Holdings Inc.
AMC,
was 11.4% of its float.
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