When a company such as OCRX conducts a reverse share split, it is usually because shares have fallen to a lower per-share pricepoint than the company would like. This can be important because, for example, certain types of mutual funds might have a limit governing which stocks they may buy, based upon per-share price. The $5 and $10 pricepoints tend to be important in this regard. Stock exchanges also tend to look at per-share price, setting a lower limit for listing eligibility. So when a company does a reverse split, it is looking mathematically at the market capitalization before and after the reverse split takes place, and concluding that if the market capitilization remains stable, the reduced share count should result in a higher price per share.

Looking at the OCRX split history from start to finish, an original position size of 1000 shares would have turned into 83.3333333333333 today. Below, we examine the compound annual growth rate — CAGR for short — of an investment into OCRX shares, starting with a $10,000 purchase of OCRX, presented on a split-history-adjusted basis factoring in the complete OCRX split history.

About OCRX

Ocera Therapeutics is a clinical-stage biopharmaceutical company focused on the development and commercialization of a clinical product candidate, OCR-002 (ornithine phenylacetate), in both intravenous and oral formulations, for the treatment of hepatic encephalopathy (HE). OCR-002 is a molecule, ornithine phenylacetate, which functions as an ammonia scavenger. Co. is conducting a clinical trial to evaluate the safety, tolerability and efficacy of intravenously-administered OCR-002 in resolving neurocognitive symptoms of acute HE. Co. is also developing an oral form of OCR-002 which provides care for HE patients post discharge to prevent subsequent episodes of acute HE. According to our OCRX split history records, OCRX has had 1 split.

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