Stock Quotes in this Article: OXBT

 CHARLOTTE, N.C. (Stockpickr) -- Oxygen Biotherapeutics (OXBT), a developer of oxygen-carrying therapeutics, is flying high today on results of a study of levosimendan use in patients undergoing heart surgery that associated the drug with reduced rates of mortality and other adverse outcomes. OXBT has announced that they are in the process of buying the North American rights to levosimendan, a drug that has already been approved in dozens of countries around the world.

At the time of this writing, OXBT is trading at $2.31, up 54% since yesterday's close. Looking at the monthly chart below, one can see that OXBT is trading only about $1.12 higher than its recent 52-week low. Its 52-week high is $22, and the stock traded as high as $64 in February 2012.

Thus, on the basis of the chart alone, it would appear that upside potential is huge, and downside risk is very low.

OXBT has announced that once it has finalized its purchase of rights to levosimendan, it will have exclusive rights to an estimated $600 milion market. The transaction is valued at approximately $4.8 million in stock as of Oct. 18, based on Oxygen Biotherapeutics' issuing an aggregate of approximately 3.4 million shares of its common stock and securities convertible into common stock to Phyxius Pharma's stockholders in a private placement. Upon closing of the transaction, Phyxius Pharma CEO John Kelley is to become CEO of Oxygen Biotherapeutics.

"Upon closing of this transaction, Oxygen Biotherapeutics will be a Company that has a clear path to commercialization with a Phase 3 asset addressing a $600 million market. With Fast Track status and an agreed study protocol under the Special Protocol Assessment (SPA), we expect we are one trial away from approval," said Michael Jebsen, Oxygen Biotherapeutics' interim CEO and CFO. 

It is easy to see why OXBT is today's high-flying stock of the day.

-- Written by Ben Brinneman in Charlotte, N.C.

Trader Ben Brinneman, featured on MarketWatch, Bloomberg and Reuters, resides in Charlotte, N.C., and is the owner of C Squared Trading. Brinneman started his career trading bonds and was an analyst for a wealth management firm. Brinneman and his team at C Squared Trading have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte.

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