Alcobra Ltd. (Nasdaq: ADHD) Rebounds from Poor Clinical Trial Results and Accusations

Alcobra Ltd. – Nasdaq: ADHD

Shares of Israeli-based Alcobra Ltd. are up over 20% on heavy volume. ADHD, traded on the Nasdaq, ended Tuesday trading at $1.05 and has risen to $1.33 in today’s trading. Normal average daily trading volumeis less than 600k shares but today shares have traded over four million.

Alcobra is a pharmaceutical company focused on the development and commercialization of their proprietary drug, Metadoxine Extended Release (MDX), to treat cognitive disorders including Attention Deficit Hyperactivity Disorder (ADHD) and Fragile X Syndrome (FXS).

On January 17, 2017 Alcobra released disappointing results from their Phase 3 clinical study. From Alcobra’s press release “In this trial, MDX did not meet the primary endpoint of demonstrating a statistically significant difference from placebo in the change from baseline of the investigator rating of the Conners’ Adult ADHD Rating Scales (CAARS).” Also on Janbuary 17, 2017 it was also announced by several law firms that they were initiating an investigation of the company relating to possible violations of federal securities laws. Shares ended down more than 50% for the day.

Alcobra has never achieved any sales. EPS for ADHD shares has been negative for the past five years and in 2015 ADHD shareholders experienced an EPS loss of $0.90.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/1/2017
Ticker Symbol ADHD
Last Price a/o 3:51 PM EST  $                      1.28
Average Volume                    565,840
Market Cap (mlns)  $                    28.93
Sales (mlns)
Shares Outstanding (mlns) 27.55
Share Float (mlns) 23.56
Shortable Yes
Optionable Yes
Inside Ownership 30.00%
Short Float 5.96%
Short Interest Ratio 2.48
Quarterly Return -45.31%
YTD Return -50.00%
Year Return -79.92%