Repros Therapeutics, Inc. (NASDAQ:RPRX) shares got among the biggest gainers on yesterday’s market. The stock opened the market with a considerable gap up, but the latest corporate update was not impressive enough for breaking up the Monday’s resistance, especially as the support from the fundamental side was missing.

Yeserday, Repros Therapeutics announced that the US Patent and Trademark office has granted a patent to the company’s lead product candidate Androxal, designed for the treatment of low testosterone in men. The management could not hold its excitement, stating that the event opens the door for further development of Androxal and extend its potential to become the leading treatment method in its area.

The market got excited as well and raised the value of RPRX stock by 9.26% to a closing price of $0.40 and to a daily high at $0.44. The total number of shares traded exceeded 2.6 million shares and the stock price crossed the 50-day moving average during the day. This, together with the bullish MACD cold be the long expected signal that the lasting decline of the stock may reverse into an uptrend.

There seem to be little support from the fundamental side, however. RPRX shares currently trade at quite exaggerated P/S and P/B ratios of 23.16 and respectively 43.10. At the end of June, the company’s assets consisted mostly of $5.2 million cash and of $995,000 capitalized patent and patent application costs related to Androxal. That costs may not be recovered if the development of the product is not continued.

Repros reports also insignificant revenues since its inception in 1987 and states that the cash available on hand will not be sufficient to cover the further clinical trials. Thus, capital raising activities are planned for not later than next year’s first quarter.

Androxal is one of the two currently developed product candidates. Recently, the company was allowed by the FDA to conduct two Phase 3 trials for Androxal in men with low testosterone who want to maintain their fertility while being treated for low testosterone. The clinical trials for the other product candidate, Proellex, have been put on partial hold by the FDA.