Published September 8, 2009

Transcu stock sold down in heavy trade

Blocks of shares in bio-medical company sold in married deals

By VEN SREENIVASAN

	Email this article
	Print article
	Feedback

THE stock of bio-medical company Transcu Ltd suffered a selldown yesterday, resulting in a one-fifth plunge in its market value. Jittery investors scurried for cover as the stock was dumped in a series of married deals struck at prices near recent record lows.

After opening unchanged at 19 cents, the counter headed straight south, with particularly heavy selling during the late afternoon session pushing it down to a close at 15 cents - a 21 per cent or 4-cent loss for the day.

The lowest the stock has ever fallen to this year is 12 cents, amid a market-wide selldown in early March this year.

Some 53 million shares changed hands yesterday, including some 24 million units in batches of married block deals at 14.5 cents and 15 cents.

Market watchers appeared perplexed by the huge selldown on a stock that has generally been quite resilient amid the recent market volatility.

'Somebody could have decided to liquidate positions quickly,' remarked one dealer. 'And this has scared other shareholders.'

Indeed, the selldown set off a retail selling spree which snowballed into huge sell orders towards the final hour of trading.

Brokers reckon many retail investors who piled into the stock last week at around 22 cents would have got their fingers burnt.

When contacted, the company said it did not know what triggered yesterday's selldown.

'We have been watching the stock price movement,' said group investor relations head, Melody Chow. 'As far as the company is concerned, nothing has changed, and we are still proceeding with our plans.'

These plans include final stage clinical trials for its trans-dermal drug delivery (drug patch) system to obtain US Food & Drug Administration (FDA) approval. The company is targeting commercialisation of the trans-dermal patches - which can deliver pain-killing and other drugs via the skin - by early 2011.

Transcu's other two divisions develop green energy solutions and new age skin replenishing and anti-ageing cosmetics.

It has already filed nearly 200 patents.

Transcu - listed on the Singapore Exchange last year through a $675 million reverse takeover of Eng Wah Organisation - posted a loss of some $7.3 million for the three months ended June 30. It counts former US secretary of state Alexander Haig, ex-deputy secretary of state Richard Armitage, and prominent Singapore lawyer Lee Suet Fern among its directors.