Guided Therapeutics Inc (OTCMKTS:GTHP) Stock Moves Down On High Volume: Now What?
Guided Therapeutics Inc (OTCMKTS:GTHP) stock ended sharply lower on Wednesday despite the company announced the news. The stock has soared 90% so far this year.
Market Action
In Wednesday’s trading session, GTHP closed lower by 7% at $0.0555. More than 283k shares have exchanged hands, above its average volume of 433K shares. The stock opened at $0.0595 and moved in a range of $0.0520 – 0.0595.
August 19, 2021 – Guided Therapeutics Receives Notification of Successful Clinical Trial Regulatory Review and $133,000 Payment from China
Here are the highlights:
Guided Therapeutics announced today it had passed the regulatory compliance review at the Department of Obstetrics & Gynecology Hospital of Fudan University located in Shanghai. Clinical trials there and at three other centers are expected to begin this quarter.
GTHP also received a payment of $133,000 from its Chinese co-manufacturing partner and distributor for China, Shandong Yaohua Medical Instrument Corporation (SMI). The funds will be used to supply SMI with parts and advice for the Chinese clinical study. Parts are expected to ship this quarter and additional participating clinical sites announced over the next few weeks. SMI estimates that the clinical study will be completed during the second quarter of 2022 with full approval to sell in China expected by the end of 2022.
Under a new agreement with SMI signed last week, GTHP expects payments totaling approximately $3 Million by the end of 2022, assuming Chinese FDA approval is granted. Approximately $510,000 of those payments is expected to be received by GTHP during the clinical study, with the majority of those funds to be received this year. The remaining $2.5 million, based on a purchase order from SMI, is due upon filing the clinical study results with Chinese FDA ($620,000) and approval by Chinese FDA ($1,880,000). The new contract then calls for minimum orders of $72 Million over the first four years post Chinese FDA approval.
Key Quote:
“We continue to be encouraged by the regulatory approvals from China,” said Gene Cartwright, CEO of Guided Therapeutics. “Fudan University is recognized as a top tier research institution and viewed by Chinese FDA as a highly credible center at which to conduct our clinical study.”
Trader Notes:
GTHP stock is trading below all the key moving averages with 200-day and 20-Day SMA stands at $0.61 and $0.57 respectively. Over the past year, the stock has gained over 48%. Will the stock be able to find the bottom and recover from the oversold zone?
