Posted by Posted by VFC on Jul 12, 2011

After having dropped to the low teens, the Generex share price rebounded on huge volume on Friday when the company announced that preliminary results from two trials are demonstrating that Oral-lyn works in patients with Type 1 Diabetes and with patients who have impaired glucose tolerance.

The nearly eleven million shares that traded hands on Friday's news-sparked rally dwarfed the daily average, which at that point was under 800,000 shares/day. It also provided an indication that there is still attention being paid to this company, and that the right news could spark a major rally on a moment's notice.

The run was short-lived, as news of a stock offering on Monday returned shares of GNBT to a low of fifteen cents.

Given all that has transpired with Generex since the Nasdaq briefing earlier in the year, this news may be the key indicator to investors that the Oral-lyn pathway to the future does still hold the potential for which many investors had in mind when placing their original buy orders.

A recent company update made it clear, however, that discussions are still ongoing with the FDA regarding the regulatory path for Oral-lyn approval, so the product will still be quite a ways away from market.

If these results continue to trend positive, then some new interest may reinvigorate life into this company as the planned reverse stock split gets underway and the plan for the spin-off of subsidiary Antigen Express rolls along.

There's still a solid market, in my opinion, for the needle-less delivery of insulin. Setbacks at Mannkind regarding Afrezza have once again evened the playing field, and it could turn out to become a neck-and-neck race again to see who brings their product to market first.

The announcement of these results were a welcome event for long term Generex shareholders, and keep an eye out for additional updates.

It could be that the dramatic dip resulting from another round of questionable blogging might have GNBT looking like a good 'buy-in for the long haul' play.

Also keep an eye out on news regarding the pending RS.

Disclosure: No position.

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