Shares in Marinus Pharmaceuticals Inc (NASDAQ:MRNS) surged over 26% Friday to $2.22 on news that the company had boosted enrolment in its trial of ganaxolone in children with PCDH19 female pediatric epilepsy and other rare genetic epilepsies.
Investors will recall that MRNS tanked in June 2016 after its missed phase III ganaxalone study that failed to mirror the reduction in seizure rate reported in previous trials. Shares tripped from the $5.34 on June 10 and closed at $1.62 on June 13. Most of that massive downside gap still remains to be closed.
Can Marinus Pharmaceuticals Inc (NASDAQ:MRNS) recoup those losses?
It is interesting that the stock has been steadily making higher lows after touching a trough of $1.19 on June 24, a 52-week low. Friday’s bullish surge has been accompanied with massive volume of 6.41 million shares and the stock closed just a shade off the day’s high of $2.38.
If the stock can make it past the high of $2.65 scaled on July 18, it may quickly sprint to $4.35 and close that June gap. That could offer some comfort to investors who have seen the stock erase 82.9% of its value over the past year, with the market capitalization currently sitting at a mere $43.31 million.
However, as on June 30, 2016, the company had cash and cash equivalents of $44.8 million, which according to the company are adequate to fund its operations into the first half of 2018.
” In the near term, we anticipate announcing top-line data from our Phase 2 exploratory clinical trial in PCDH19 epilepsy and completing our Phase 1 clinical trial of ganaxolone IV,” said Christopher M. Cashman, chief executive officer, last month. “Additionally, we are initiating exploratory studies in female depression disorders.”
Nearly 45% of MRNS was held in strong institutional hands as on June 30, including Canaan Partners VII, LLC (12.62%) and Franklin Resources, Inc (11.19%).