Generex (GNBT) subsidiary Antigen Express provided an update on its cancer immunotherapy AE37 last week, but the news - which was the announcement of positive interim results - failed to move the GNBT share price as a positive Oral-lyn update did just weeks prior.

In fact, amid the recent market turmoil, the share price has dipped even lower and now trades for just a hair over ten cents, well off the 52-week high of fifty $.56.

Last week's update on the progress of AE37 included excerpts from a recent presentation by representatives of Antigen Express at Cambridge Healthtech Institute's Sixth Annual ImVacS: The Immunotherapeutics and Vaccine Summit held last week in Cambridge. The presentation consisted of preliminary results from the ongoing Phase II AE37 breast cancer trial, and the results presented indicated that the trial is trending positive.

The primary endpoint of the study, according to public information, is to demonstrate a significant reduction in relapse rate in AE37 patients after 24 months follow-up, and the data presented showed that at a "median of 17 months follow-up, the relapse rate in patients with low levels of HER2 expression treated with AE37 is half that of the same patient population in the control arm."

Investors were unmoved by the update, however, as the pending spin-off of Antigen Express and reverse stock split (RS) of GNBT shares seems to be dominating the most immediate investor interest. It's a common stock market rule of thumb that shares decline after a company conducts a reverse split, barring the release of coinciding news, and it's likely that many expect the same from GNBT, even with the significant haircut experienced by the market cap this year.

On the other hand, speculative money has a tendency to leave the market in times of turmoil, and that could also be contributing to the low and stagnating GNBT share price.

Recent updates by the company regarding Oral-lyn and AE37 indicate that Generex and Antigen Express both hold some mid to long term potential, it's just a matter of the company convincing investors that the newfound transparency and optimism is for real.

With a market cap of just over thirty million, and a share price of a dime, GNBT has become an awfully tempting speculative buy again. Still, it's also tempting to wait until the back end of the RS to see what the company has to offer at that point.

Oral-lyn and Mannkind's (MNKD) Afrezza look to be neck-and-neck again in terms of time frame to market again, and both still could revolutionize the method in which diabetics receive their insulin. Shares of both companies have also been hammered this year and might pay dividends for speculative investors over the next couple of years.

For Generex and Antigen Express, AE37 is the wild card. If anyone else out there values this product even close to what an independent auditor did last year, then AE could do very well in the pending spin-off, from which investors of GNBT will also benefit.

Generex is down, but not out.

Keep it on the watch list.

Disclosure: No position.

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