Caleco Pharma Corp. (OTC:CAEH) Drops Down On Record Volume

Currently promoted by three different promoters, the stock of Caleco Pharma Corp. (OTC:CAEH) dropped severely yesterday. The lack of fundamentals and the still missing significant improvements of the biotechnology company made investors sell out intensively.

Yesterday’s 24.58% decline of Caleco Pharma was crucial and the under $1 stock dropped again far below its moving averages and its previous support levels. It seems like despite the aggressive and costly promoting, compensated with over $90,000, the market was selling out. The 5.3 million shares volume was a record for this year. Extremely volatile in the daily trading, the stock closed at $0.135.

Caleco Pharma’s PRs attempted to convince investors of the company’s strategic position by pointing out the growing global hepatitis C prescription and liver health maintenance market. Though, the market was not impressed, as no significant improvements towards launching of any potential products has been made.

Previously engaged in the exploration and development of a mineral property in Canada and with no revenues since inception, Caleco entered the pharmaceutical industry at the beginning of last year through the acquisition of a proprietary technology related to the treatment of liver diseases.

As the latest 10-Q filed did not raise optimism, the stock of Caleco is losing value progressively. The needed working capital is not available and if not obtained, the “Liver Health Formulation” -based products will not be marketed soon. The only step made so far is an agreement with a Spanish corporation manufacturing cosmetic products, to develop and produce samples of Caleco’s future products.

Caleco has licensed in November last year certain products for development and sale in Europe and a five percent royalty is expected, though the licensed corporation has not provided yet any plan as how it intends to market the products. Also, no progress is reported on the agreement with Natac Biotech, under which Caleco should have access to Natac’s laboratory facility and procure certain laboratory services.

Already defaulting on most of its debt and financing operations through sale of securities, Caleco will need $2.7 this year to develop its over-the-counter products, and eventually to develop the Liver Health Formula as an FDA approved pharmaceutical. As the initial plans to conduct a clinical trial at the end of 2009 failed, the tests are now scheduled for a not further specified period in “the first half of 2010″. Of course, given the required funding is obtained.

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