Volume Spike Investor

Aspen Biopharma (Naddaq – APPY) shares are up more than 20% in Thursday trading on more than twice their normal volume, as traders appear to be anticipating FDA approval for the company’s AppyScore test that helps diagnose appendicitis.

Aspen Bio previously had said it expects to file for FDA approval by end of the second quarter — which is now in roughly 8 trading days.

Appendicitis is expected to affect 5 to 7% of all people in the world at some point in their lives. The company says that in the U.S. alone, about 6 million patients enter emerency rooms each year complaining of abdominal pain, of which about 320,000 cases are diagnosed as appendicitis. To date, there appears to be no individual sign, symptom, test, or procedure capable of providing an objective and reliable diagnosis of the condition.

Institutional interest may have increased in recent months for APPY shares, following a Lazard-sponsored roadshow in April. It’s possible that second-quarter SEC filings will show there’s more institutional ownership than the 22% reflected as of the company’s March 31 filings. Peak institutional ownership of APPY shares had been 55% of the shares outstanding.

While the potential FDA approval filing is today’s driver, Daryl J. Faulkner being named CEO in February brings heavy diagnostics experience, as well as a leader that’s been at the helm at other biotech companies that were acquired. He most recently served about two years as president and CEO Digene Corporation, a Nasdaq-traded company, prior to its acquisition in July 2007 by Qiagen.

Mike Tarsala