Celator Pharmaceuticals Inc (NASDAQ:CPXX) shares rose 8.62% to $15.38 on Tuesday, edging close to the top of its yearly range at $17.40.
Celator Pharmaceuticals Inc (NASDAQ:CPXX) could be prime for a selloff on profit-taking, as investors might be waiting to close their bullish positions on the stock around the top of its 52-week range. Shares have traded between $1.12 to $17.40 in the past year.
Shares of Celator Pharmaceuticals had been advancing since the company reported the first quarter earnings last week. The company highlighted several milestones for the period while setting goals for the next few months, including a continuation of their plans to on the achieve VYXEOS commercial readiness in the United States and an expansion of clinical development of VYXEOS via investigator-initiated studies, oncology cooperative groups and company-sponsored studies. The company also has plans to submit the New Drug Application (NDA) for VYXEOS by the end of Q3 2016.
However, analysts from Trade-Ideas LLC cautioned that the stock could be prime for a strong drop following the similarly strong rally. TheStreet Quant Ratings also rates Celator Pharmaceuticals Inc (NASDAQ:CPXX) stock as a sell, primarily due to deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and feeble growth in its earnings per share.
Celator Pharmaceuticals Inc (NASDAQ:CPXX) is a clinical-stage biopharmaceutical company engaged in developing products to cure cancer. Its technology platform, CombiPlex, offers the rational design and rapid evaluation of combinations incorporating traditional chemotherapies, as well as molecularly targeted agents to deliver anti-cancer activity. So far, its products are just in research and development phases.
The company’s market cap is approximately $672 million and it has cash equivalents of $67.5 million as of March 2016, up from the $23.3 million in the previous quarter. Research and development costs have been maintained at $2.7 million for the first quarter while general and administrative expenses rose from $1.8 million in the first quarter of 2015 to $2.5 million for the first three months of this year.
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