|Will Access Pharmaceuticals keep trending higher?|
|Monday, 11 October 2010 17:14|
As we told our subscribers this past weekend, the stock for Access Pharmaceuticals (OTC: ACCP) has been acting very bullishly. During the past two weeks the company the press releases have caught our attention and the stock has been pushing higher. Our advice was for investors, just as it was back in September, was to put the stock on their watch lists.
While candle stick analysis shows some uncertainty in the market direction at the end of Columbus Day trading, shares of ACCP broke through resistance on Friday and closed up at $2.63+0.13 (5.20%) with the next 2 levels of minor resistance showing at $2.69 and $2.75 respectively. In addition to everything else that is shaping up for them, Greg Zeng of Zacks recently reconfirmed his $8.00 price target for ACCP and stated his belief that "third quarter financials are expected to be better than our estimates."
This morning, the company announced some highlights from a poster presentation on European clinical experience of MuGard at this year's European Society of Medical Oncology Conference in Milan, Italy.:
According to the company, the siRNA application has shown significant promise. There are several diseases for which this targeting approach holds promise; for example, cancer, rheumatoid arthritis, psoriasis, acute leukemia, lymphomas, Crohn’s disease, ulcerative colitis, and multiple sclerosis. Access Pharmaceuticals is developing applications of this technology in the area of oncology, while seeking collaborations and partnerships for development of this technology for other diseases.
Additionally, Access has initiated a program whereby proprietary formulations of currently marketed chemotherapies will be developed and tested to assess CobaCyte's ability to enhance drug pharmacokinetics and pharmacodynamics.
In a previous press release issued in late September, the company announced that signed a $30 million supply agreement for it's novel; ready-to-use mucoadhesive oral wound rinse and coating MuGard with RHEI Pharmaceuticals, Inc. ("RHEI"), a specialty pharmaceutical company focused on bringing proprietary medicines to the China market. Access will ensure manufacturing capacity of up to a minimum of $30 million of product in the licensed territories. The market for the treatment of oral mucositis is estimated to be in excess of $1 billion world-wide.
At the time, BioMedReports reached out to Access Pharmaceuticals, CEO Jeff Davis to ask about that agreement and this is what he had to say:
"Central to the announcement is both the sublicense agreement between RHEI and Jian An, and the $30M MuGard supply agreement. Jian An is a large, well-established pharma company in China with over 150 branch offices and 1400 sales reps calling on hospitals, clinics, etc. It was the expectation of a larger, more significant commercial launch in China that triggered the agreement and necessitated the need to secure some manufacturing capacity through the supply agreement with Access Pharmaceuticals. We are certain that Access, through our third-party manufacturer Accupac, can meet the near-term needs of RHEI/Jian An for its launch of MuGard. Additionally, this relationship allows Access to explore additional collaborative opportunities with Jian An on our other programs."
We are told that Jian An is responsible for finalizing marketing approval of MuGard and though they remain on-track with the finalizing the regulatory process in each area, they wanted to ensure adequate supply of MuGard to push through its promotion channels for when marketing approval is finalized.
See the today's ACCP chart here:
More information about ACCP's Cobalamin-targeted drug-delivery program can be found here:
Disclosure: No positions