On March 16, Zosano Pharma Corp. (ZSAN) rebounded during the regular session after a continuous downfall. The stock continued its uptrend in the after-hours as well. There is no official announcement or SEC filing from the company behind the stock’s comeback.
During the regular session, the stock rallies by a huge 19.09% after fluctuating between $0.1551 and $0.1900. ZSAN closed the session at a price of $0.1840 per share while 15.48 million shares exchanged hands. The tock continued its uptrend into the following after-hours session to add a further 8.42%. Thus, ZSAN was trading at a value of $0.1995 per share at an after-hours volume of 1.64 million shares on Wednesday.
The clinical-stage biopharmaceutical company, Zosano Pharma Corp. has a market capitalization of $26.49 million. Currently, the company has 171.46 million shares outstanding in the market.
What is Happening with ZSAN?
ZSAN stock had been in a downtrend for the past few days. After a persistent but mild downward spiral for a few days, the stock rebounded on Wednesday. Since there is no recent news or SEC filing, the stock seems to be moving due to external factors. It seems social media chatter, stock sentiment combined with the downtrend were the cause of the recovery. Investors seem to be buying the dip as it provided a good investment opportunity.
ZSAN stock stands at a year-to-date loss of 60.85% while it lost 20.83% last month. Moreover, the stock subtracted a huge value of 87.48% in the past year.
Upcoming Special Meeting
According to the SEC filing of February 25, the company will hold a special meeting of stockholders on April 8, 2022, at 8:30 am, ET. The purpose of the meeting is a Reverse Stock Split Proposal in the range of 1-for-5 to 1-for-50 for regaining compliance with Nasdaq’s minimum bid requirement.
Furthermore, the meeting will take place virtually on the internet via a webcast.
FDA’s Response Letter to ZSAN
As per the company’s SEC filing of February 18, ZSAN received a response letter from FDA on February 17 regarding its NDA resubmission. The company had resubmitted its NDA for M207, zolmitriptan microneedle system on January 18. According to the letter, the resubmission failed to fulfill the previously identified deficiencies in the resubmission. Thus, FDA informed to not commence a substantive review of the application.
Additionally, the company started to analyze and work over its best course of action regarding the NDA.