MAP Pharmaceuticals shares rise in chaotic trading

The stock rose 9 cents, or 2.3 percent, to $3.95 but plunged as low as $1.75 earlier in the trading session, marking the lowest point since going public just over a year ago.

The Mountain View, Calif.-based company lost $20.4 million, or $1 per share, compared with a loss of $11.7 million, or $14.07 per share, during the same period a year prior. In the most recent quarter, MAP had 20.4 million shares of common stock outstanding, compared with just over 834,000 a year earlier. The company went public in October 2007.

The company had no revenue in either period.

Analysts polled by Thomson Reuters expected a loss of 88 cents per share.

Operating expenses more than doubled to $20.2 million during the quarter as the company moves its two lead drug candidates through late-stage development. The drug candidate UDB is being studied as a treatment for pediatric asthma and will enter a market worth about $1.1 billion and growing. Meanwhile, the company is developing MPA0004 as a possible migraine treatment.

"We want to make sure we continue to conserve our cash, conduct our programs, and move forward," said President and Chief Executive Timothy Nelson, adding that the company has enough funding to finish development of the lead drug candidates.

The company had cash, cash equivalents and short-term investments totaling $63 million as of Sept. 30. Meanwhile, MAP garnered interest from potential partners, Nelson said, adding another financing option if needed.

Deutsche Bank-North America analyst David M. Steinberg, brushed off the wider loss and reaffirmed a "Buy" rating on the stock based on the future value of the company's drug pipeline. Combined, he said, UDB and MAP0004 could have combined annual sales of $1 billion at their peak.

"We believe MAP's stock is very attractively priced given the opportunity represented by its two late stage product candidates, UDB and (MAP0004) Tempo Migraine," he said in a note to investors. tumultuous