We spoke about Lpath Inc. (LPTN:NASDAQ) in our last interview. I found it to be an extremely interesting story. Your target price is $40, which would make this a $400M market cap company. It would be a major grand slam for investors. It is the largest implied return in your coverage, I think. Could you address it today?
RS: We have been fans of Lpath for a long time, though we have been dissatisfied with the pace at which it has progressed through its phase 2 proof-of-concept clinical development program with its lead product candidate, Isonep (sonepcizumab). This is for wet age-related macular degeneration (AMD), a massive unmet need; the target is sphingosine-1-phosphate (S1P).
But that program is now solidly back on track. We expect positive data to read out from its Nexus phase 2 study in H1/14, which is six to nine months behind the original schedule. At the end of the day we don't think it's a meaningful delay. Lpath's partner, Pfizer, remains very committed.