Biotech Mania Fuels Rise in Techniclone

How quickly can a penny stock turn into one with a market value above $1 billion?

In about two months, in the case of Tustin-based Techniclone Corp. (TCLN), which has benefited from the mania for biotech stocks as well as its recent developments. The stock was trading at about 50 cents a share at the start of the year, but on Tuesday it rose $1.69, or 14%, to $14, as the biotechnology company and rival Oxigene Inc. (OXGN) said they plan to jointly develop and market Techniclone’s vascular targeting agent technology.

The venture to develop therapeutic agents for cancer treatment will include an upfront licensing fee and milestone payment to Techniclone by Oxigene. Oxigene shares, meanwhile, rose $3.50, or 16%, to $26 on Nasdaq.

Despite a 3% drop Tuesday, the Amex index of 15 biotech stocks has risen 96% year-to-date.

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Boom Biotech

Shares of Tustin-based Techniclone Corp. have surged 26-fold this year. Daily closes and latest on Nasdaq:

Tuesday: $14, up $1.69