Telik, Inc. (NASDAQ:TELK) is seeing shares surging pre-market after it announced that the U.S. Food and Drug Administration has removed the partial hold on TELCYTA clinical trials after a complete review of TELCYTA data by the agency and permits the resumption of TELCYTA clinical development.
This is Telik’s most advanced development program, a tumor-activated small molecule product candidate in clinical development for the treatment of advanced ovarian cancer and non- small cell lung cancer. Its other development candidate that is considered an advanced candidate is TELINTRA in clinical development for the treatment of myelodysplastic syndrome.
As of Friday’s close at $3.46, Telik had a $181.8 million market capitalization. Shares are up over 15% pre-market at $4.05. The 52-week trading range is $2.55 to $20.36, so you can see the reason for the large push pre-market. It trades an average of about 370,000 shares in any given day, but as of the end of September its short interest was more than 9.4 million shares. This sounds like there will be lots of short covering this morning.
Jon C. Ogg
October 15, 2007