Rich Pharmaceuticals Inc (OTCBB:RCHA), a late-stage biotech firm that develops innovative medications in oncology said that Dr. Chittima Sirijerachai, MD has committed to take role of the principal investigator for the AML clinical trials. These studies will use Rich’s flagship compound ‘RP-323’. In her new role, she will enroll subjects and act as a liaison for the company and direct some of Rich’s clinical trial initiatives outside the U.S.
The management view
Ben Chang, the Chief Executive Officer of Rich Pharmaceuticals Inc (OTCBB:RCHA), stated that the management is delighted to have Dr. Sirijerachai on board. The company values her guidance and expertise in planned clinical trials. Moreover, the management continues to assertively push ahead with company’s AML clinical trials and Therinova’s clinical research experience and expertise in oncology; the team is confident in its regulatory approval strategy.
The share price of Rich Pharmaceuticals exploded at the beginning of February, posting whopping gains of 1544% in a single trading session, going from just $0.0009 to $0.0148. The company issued a press release after months, but the impact didn’t last long. RCHA ticker began to decline the very next day. It was expected accounting the red flags surrounding Rich Pharmaceuticals. For starters, pharmaceutical and biotech firms in the OTC markets normally have cash reserves although they are away from posting any revenues.
The financial performance
However, it is not the same case with Rich Pharmaceuticals. As per the last report ended December 31, the company had cash of just $5,823. The current assets were $5,823 and current liabilities stood at $1.19 million. It is one of those companies with zero revenue, and net loss was $1.43 million. Looking at these financial figures, it is inexplicably easy to understand why Rich Pharmaceuticals started to decline so rapidly after the huge gains it posted after release of PR and erased all the gains made in a little over a month.