Here’s Why Zosano Pharma Corp Shares Are Rising Today
Shares of Zosano Pharma Corp (NASDAQ:ZSAN) are rising nearly 13% in Friday’s trading session. The reason is nothing short of shocking. The primary catalyst appears to be the approval of a reverse stock split by shareholders and the company’s board of directors this week.
Normally, reverse stock splits, where more shares of stock are exchanged for fewer shares in order to increase the share price of a company, are viewed as negative news and a sign of weakness. But Zosano’s 1-for-20 reverse stock split was taken somewhat positively as it lifted the company’s share price well above the dangerous $1-per-share level where it could receive a delisting notice from the Nasdaq.
With its share price now around $8 post-split, it also psychologically makes Zosano more attractive to hedge funds and investment firms that might not otherwise invest in stocks with a low share price.
In many ways, Zosano’s shareholders have a number of things to look forward to. For instance, the NDA filling for the company’s lead candidate M207, a zolmitriptan patch for acute migraine, which is expected in the second half of 2019.
In recent earnings call, Zosano CEO John P. Walker noted, “I want to emphasize that we are singularly focused on doing what needs to be done to file our NDA and ultimately commercialize M207, a product we believe will be an important addition to the treatment of acute migraines. We are delivering on our goals in both a timely and cost-efficient manner.”
In addition, the company has recently announced that it has received a Notice of Allowance from the United States Patent and Trademark Office for a patent application titled “Method of Rapidly Achieving Therapeutic Concentrations of Triptans for Treatment of Migraines”. This newly-allowed patent application contains claims generated from formulation, preclinical and clinical studies, and highlights the unique aspects of the Zosano technologies and their applicability for treatment of migraine.