Heavy volume on the buy side may indicate anticipated Zertane announcement
It's difficult to determine what cause the heavy buying today in Ampio shares but one obvious conclusion is that the long awaited Zertane announcement may be coming this morning or very soon and the buyers today may know about it.
racavilli - What announcement? The only big news for Zertane now would be the trial results. The trial is 12 weeks according to AMPE. According to the 8K, "The Zertane™ pivotal trial in the USA is estimated to cost less than $4 million. The drug has already been manufactured and ready for the trial." There has been no news and cannot be any until the trial is complete.
Yes, there could be a licensing and/or partnership deal in Europe, but would it not make sense to wait until it is approved in the US and the trail results are in (August or September) before doing a deal? If the US test was not good an Europe deal is then sort of dead anyway. If the US test is good then the partnership deal is worth lots of money.
FWIW - I would guess AMPE will sell Zertane rights. It does not fit the direction of the other drugs they have.
The company has already stated it has a Zertane deal in the works contingent upon the FDA approval of the POPE. They further stated that it may be last time they speak of Zertane because of the imminent deal. The FDA approved the POPE, so now the "announcement" of the deal is eagerly anticipated - and possibly imminent.
It does not make sense to wait for the trial results. Deals of this nature are done with milestone payments based on satisfactory trial results, and ongoing royalties. Makes just as much sense to do such a deal now, as after the trials (and risk some problem with the trials). Either way, major dollars will come contingent upon trial results, but the deal itself should be a huge boost to the company and the stock.
There is no rush. We ll know that Zertane is going to make shareholders a fortune. Patience pays the biggest rewards. Perhaps the biggest question is . . . do you want profits . . . OR . . . do you want action?