Broadfin Capital Increases Its Profitable Stake In Advaxis Inc. (ADXS) To 5.27%

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Let’s now move on to discussing some factors that could explain Advaxis’ soaring stock price during the first half of this year. The biotechnology company is operating in one of the trendiest areas of drug development at the moment: cancer immunotherapy research. Put simply, cancer immunotherapy is the use of the body’s own immune system to fight cancer. Hence, Advaxis is currently developing and testing an engineered bacterium, called Listeria monocytogenes, as a way to train immune systems to fight cancer more effectively. The company has run a few clinical trials aimed at testing this bacterium’s efficiency in treating a variety of cancers. So one of the main reasons the shares of Advaxis skyrocketed during the first half of the year is that the company presented positive clinical and preclinical data on some of its previous studies. Precisely, the company presented positive data on three studies at the American Association for Cancer Research’s annual meeting earlier this year. All three studies displayed positive results on the efficiency of its products.

However, let’s not forget to mention that Advaxis does not have any products on the market at the moment, which actually represents a high risk for current and potential investors in the company. At the same time, Advaxis’ expenses are likely to increase over the next years as the company moves its earlier-phase studies into more costly late-stage phases. Advaxis had $45.94 million in cash and cash equivalents at the end of the fiscal second quarter that ended April 30. Whereas, the company’s research and development expenses amounted to $6.14 million for the quarter, compared to a figure of $3.58 million reported in the fiscal first quarter. Therefore, Advaxis’ expenses appear to be rapidly increasing. However, the company’s potential is massive and some future positive data on its current studies will definitely push the stock even higher.

Considering Kevin Kotler’s expertise in medical technology companies, it is highly likely that Advaxis will deliver positive data on its studies in the upcoming months. In the meantime, Phill Gross and Robert Atchinson’s Adage Capital Management is the most bullish hedge fund on Advaxis Inc. (NASDAQ:ADXS) within our database, holding an ownership stake of 5.14 million shares as of March 31.

Disclosure: None

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