Today shares of Oncology Pharma Inc. (OTCMKTS: ONPH) have doubled on the US OTC market on reaction to further news on one of its drugs that may help those getting cancer treatments fight off other viruses from harming them. The stock is a small cap worth roughly three million dollars in market cap. While there are 150 million shares of the stock outstanding only 20 million are free trading on the exchange so it does not take much buying or selling to make the stock put on a big move like is happening today as you can see from the chart.
The company announced yesterday in a press release that its development partner and licensor Kalos Thearapeutics is making “progress in its efforts to discover and develop a novel multi-drug cocktail of investigational peptide KTH-222 and immune-stimulating agents that can be administered as prophylaxis before exposure to the SARS-CoV-2 virus or as a treatment for immune-compromised cancer patients already infected. The key here will be an opportunity for treating asymptomatic patients. Kalos has identified numerous immune-stimulating agents and will target two based on safety and efficacy, as well as other desirable attributes, to begin development.”
There are no actual specifics on what the “progress” being made actually is, but the news release and its linkage to the coronavirus has attracted a lot of attention and caused many traders to buy the stock in anticipation of further developments. On twitter there is a lot of excitment:
@timothysykes something to put eyes on – caught $ONPH on the scanner, 1st day volume spike, gapped up 90+%, COVID-19 related niche news twisted with cancer drug, stock promotion flagged, chart has bullish vibe, there is sly talks on funding.— Brian Michael Seaton (@BMSeaton) April 22, 2020
Stinks of a pre pump and dump setup!
We have seen several stocks like this move on the US OTC market this week. For instance DECN was a huge gainer yesterday and is up again a lot today. PCTL also jumped on Monday. While this has happened oil has crashed and a lot of small traders with Robinhood accounts are trying to buy energy stocks and airlines. Is this a good idea? I did a video about this here.
The stock market itself got hit hard Monday and Tuesday, but is bouncing today. There a lot of mixed opinions on what is happening. I talked about what I see on the charts in my morning market update.