This is not an uncommon pattern in these Biotech stocks.
If you look at KERX right now, it wasn't long ago the stock was below $2 and the situation looked completely hopeless.
Given the most recent release and direction the management has choosen to take, this stock will almost certainly have a bump up to 3-4 range. Getting it all the way back up to $10 would be very difficult but a speculative bump is more than likely going to happen.
This has nothing to do with the success of the treatment or fundimentals. It's just a very common pattern.
You are correct about that. I will add to the list ACAD, (PPHM pending rebound B/O-partner) ABIO & many more. Cantor, I believe is handling strategy (buyout, partner or sale of some pipelines) discussions. I believe that it may be their current partner. Something is going on that we may see in a few WEEKS or 1 to 6 months from my observation of biotech that have issues.
I forgot about KERX. They were up to $19 in 2006 and hit a low of 9 or 10¢ in Mar-May of 2006 and it looked like it was over but now they are back to 8 bucks or so... great example. No splits either. Could be very similar here.