What Is Up With Innocoll Holdings Inc. (NASDAQ:INNL)?

Innocoll Holdings Inc. (NASDAQ:INNL)

On Friday INNL closed at $0.80. In today’s pre-market, Innocoll Holdings PLC (NASDAQ:INNL) shares were quiet. Only 2,200 shares had traded hands and INNL had a pre-market high of $0.87 and a pre-market low of $0.85. However less than 15 minutes into the regular trading session, larger than normal lots started trading and the price quickly shot up over $1. By lunchtime INNL had gained over 75% and reached an inter-day high of $1.56.

Innocoll Holdings PLC (NASDAQ:INNL) had been trading over $2 until the end of December when shares dropped over 50% in a single day. That drop was precipitated by an announcement from Innocoll that the FDA had issued a “Refusal to File” letter in connection with the company’s product candidate Xaracoll. For the year, INNL shares are down over 90%.

That news motivated several law firms to initiate class-action lawsuits against Innocoll Holdings PLC (NASDAQ:INNL) alleging that throughout the Class Period Innocoll made false and/or misleading statements and/or failed to disclose that: (1) Innocoll’s New Drug Application (“NDA”) submission to the FDA in October 2016 for XARACOLL was incomplete; (2) due to the incomplete NDA submission, XARACOLL would not be approved in 2017 as investors were led to believe; and (3) as a result, Defendants’ statements about Innocoll’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

However today’s price action has given credence to some that Innocoll Holdings PLC (NASDAQ:INNL) will provide a better than expected financial report at the end of the month. Also mentioned as a possible catalyst is a refiling with the FDA in defense of their previous application regarding Xaracoll. Should either of these events come to pass then the existing price and volume action is easily supported. However biotech stocks are notoriously volatile and INNL is no exception as was exhibited at the end of 2016. Following that drop, three analyst firms all downgraded INNL to “Neutral”.

Ticker Symbol INNL
Last Price a/o 1:06 PM EST  $                      1.42
Average Volume                    526,250
Market Cap (mlns)  $                    21.99
Sales (mlns) $4.90
Shares Outstanding (mlns) 27.6
Share Float (mlns) 21.8
Shortable Yes
Optionable No
Inside Ownership 10.70%
Short Float 2.19%
Short Interest Ratio 0.91
Quarterly Return -68.12%
YTD Return 15.49%
Year Return -90.16%

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. 

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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