NOW that Prana Biotechnology shares have succumbed to gravity, investors must be wondering what's next for the aspiring drug developer?
The company's share price soared 54 per cent last week following news that its potential Alzheimer's disease drug had passed a 12-week safety trial with flying colours, showing some modest but encouraging signs of efficacy. After three days of above-average trading volumes, it is now back to previous levels.
However, it appears that there might be more good news to come.
The Melbourne-based drug developer recently played host to a team of executives from global healthcare giant Johnson & Johnson. And it wasn't just a social call.
The visitors spent some time poring over Prana's books, including data on its drug, known as PBT2.
While Prana chairman Geoffrey Kempler remains tight-lipped, it is believed confidentiality agreements have been signed and the companies are in the throes of nutting out a licensing deal that would see the pharmaceutical company fund further trials.]