MediciNova, Inc. (NASDAQ:MNOV)

CAPS Rating: 3 out of 5

Acquire & dvlp high-qlty small molecule therapeuts


Player Avatar zzlangerhans (99.85) Submitted: 5/9/2013 2:03:34 AM : Underperform Start Price: $4.01 MNOV Score: +13.20

Damn, has anyone out there been watching MediciNova the last couple of weeks? Did the announcement of a second ATM financing actually induce a near double in the stock, or is there some serious manipulation going on here? The quarterly results today indicate the company has 3M in cash, 0.7M shares available to sell via the Aspire ATM (about another 3M in cash), and 3.2M left in the Macquarie ATM. Meanwhile, the pipeline consists of MN-221 which failed a phase II trial in asthma last year and ibudilast for substance abuse. The company has essentially stated they will require additional funding to continue clinical development and unless a partnership magically materializes that means ... a third ATM?

A long history of clinical failure, repeated dilutive financings, and promotion from dubious sources such as BioMedReports is not a solid basis for a doubling of share price in the absence of catalysts. As soon as this move has run its course, I'm going to be checking if this stock is shortable.

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