Yes, TELK got a recent Orphan Drug Status....and Yes, TELK recently set the guidelines with the FDA for it's next phase 3 study....but....TELK has to raise more cash, which means selling more shares. That causes a dilution of ownership, which means a "crash coming". Guaranteed. Stocks pretty much always crash when they raise more funds through more shares being issued.
Also, TELK will no longer be a "low float" stock once that happens.
So, SELL, SELL, SELL this stock now. TELK right now has nothing to do with "value". It's not about value. It's about TELK having to face an inevitable crash when it raises more cash. See TELK as having a VALUE of $0 right now. SELL! Maybe buy later under $1.00 and then hope for good drug news if you buy back in. Good luck.
Just a counter point to your thesis, orphan drug status allow TELK to seek government grants to bridge any funding gap they my have in the short term or at least long enough 1-3 months to find a partner.
This is the most recent information i could find on grants:
"The cost of human clinical testing of drugs classified as orphan drugs is subsidized by the government through the Orphan Products Development Grant Program. The annual budget for the Orphan Products Development Grant Program, which includes biologics, medical devices or medical foods, is $14 million in 2008. Grants are funded for up to three years. The first phase is granted from $200,000 and second and third from $350,000. Up to 15 news projects are awarded grants each year."
A grant of $350,000 for a Phase 3 wouldn't even cover the CEOs salary for a year. They will need 10's of millions to fund it. IMO.