In April, I wrote an article on Opexa Therapeutics (NASDAQ:OPXA) with a thesis stating that ongoing clinical success of Opexa's lead drug candidate, Tcelna (imilecleucel-T), could translate to regulatory approval and potentially fill a significantly unmet medical need in patients with Secondary Progressive Multiple Sclerosis (SPMS). I also argued that Merck Serono, the biopharmaceutical division of Merck (NYSE:MRK), which has option and licensing rights to Tcelna, could acquire Opexa at a substantial discount before exercising its option in order to avoid hefty milestone and royalty payments if and when the product is commercialized. Opexa's announcement of a new indication potentially increases the company's market valuation.

Yesterday, however, we learned that Opexa planned to conduct a near-term public offering, sending shares down 18%. Fortunately for shareholders, this offering was suddenly terminated today, prompting me to reiterate my bull thesis as Opexa's remains on course to provide a topline readout on the ongoing Abili-T trial in 1H 2016, preceded by possible IND filing for OPX-212.

Some key highlights of Opexa's latest announcement are as follows:

• Opexa's plans to conduct a near-term public offering were terminated on September 16th.
• Management cites harm to shareholders as a primary reason for terminating the offering.
• The condition of the market is likely the reason for the cancellation, for any offering would likely cripple the stock price, indicative of the 18% drop in after hours yesterday.
• Opexa's cash position stands at roughly $16 million. It is projected that funds should last until Q4 2015.

Unfortunately, it seems that this is a very uncertain time to be an Opexa shareholder, as management continues to exhibit a general lack of transparency with respect to the timing and completion of offerings. With the termination of plans to conduct a near-term offering, however, it appears that current shareholders are temporarily safe from the harmful effects of market financing.

But why did management suddenly change their mind? The only reason shareholders were given was that the current market conditions are not conducive to a secondary. This raises two additional questions, including 1) if the current market conditions are inadequate, why would the company scare shareholders with yesterday's offering announcement, and 2) does the termination of the offering ensure no near-term offering? In short, I believe management quickly cancelled the offering after observing the repulsive 18% drop in AH, but the answer to question 2 is likely no: Opexa could announce plans to conduct another offering. In fact, I wouldn't be surprised if it took advantage of any hike in share price to plan another offering. Regardless, the topline readout from the Abili-T study in 1H 2016, preceded by catalysts related to OPX-212, should alleviate long-term pressure on the equity caused by financial obscurities.