This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Rexahn Higher on Deja Vu Stock Promotion

BOSTON (TheStreet) -- Rexahn Pharmaceuticals (RNN) jumped 24% to $1.84 a share Monday after a web site that promotes biotech penny stocks to retail investors told subscribers the stock was a "solid bet" to reach $10 or more by the end of the year.

The same web site, BioMedReports.com, last promoted Rexahn heavily one year ago with repeated promises that the small drug developer was close to signing a $1 billion drug licensing deal that would propel the stock to $15. Those reports helped fuel a speculative run in Rexahn shares from 70 cents to more than $3. The promised licensing deal never happened and Rexahn's stock price crashed to below $1 a share.

Rexahn's lead drug, Serdaxin, is an antidepressant that failed a mid-stage clinical trial last year. Despite the negative results and the inability to find a partner, Rexahn elected to move ahead with a larger phase II study of Serdaxin in patients with major depressive disorder. Results from the new Serdaxin study are expected late in 2011.

On Monday, BioMedReports was back promoting Rexahn to its subscribers and promised a new report on the stock today:

"Given what just happened to Clinical Data, RNN has become the next candidate in line for positive FDA developments in the anti-depressant market. There is little doubt about that and I will go into why that is important for RNN step-by-step. So as a mid-to-long term investment, this is very solid bet. I will explain in detail why this can become a $10+ stock by the end of the year," BioMedReports said in its Monday alert.

The FDA approved Clinical Data's (CLDA) antidepressant Viibryd at the end of January.

BioMedReports send its alert on Rexahn to subscribers at 12:48 pm ET Monday. At that time, Rexahn shares were trading around $1.50, flat on the day, but the stock quickly spiked, hitting an intraday high of $1.90 before closing Monday at $1.84. Trading volume was light but surged after the BioMedReports alert, with more than 5 million shares trading hands by the end of Monday -- almost six times normal.

Rexahn shares were up 3% to $1.90 in Tuesday pre-market trading.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,919.59 +80.85 0.48%
S&P 500 1,981.60 +9.86 0.50%
NASDAQ 4,527.5140 +19.2020 0.43%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs