Excellent Talk By Dr. Mark H. N. Corrigan (A.K.A. 'The Big Sky Bear')
First, sorry to hear that Captain had an accident up in Big Sky Country.
1. Captain addressed the pain scale and clarified the placebo effect. Placebo effect is real and worth 1 point. A Z160 success is going to be defined as 2 points of pain scale improvement if the statistical power is sufficient to reject the bad ol' null hypothesis. Zalicus is using (PI-NRS) to measure Z160 pain reduction. Pfizer Global R&D says a 2 point reduction is clinically important. Captain, thanks for clarifying this point.
2. A big shout out to Alexis Borisy for innovating cHTS. cHTS is keeping the lights on at Zalicus headquarters. Novartis loves cHTS, Johnson & Johnson loves cHTS, and cancer patients will feel the love of cHTS power really soon. If you EVER doubted the contribution and legacy of Alexis Borisy to CombinatoRx and Zalicus, $7 million dollars of annual revenue might be changing your mind about now.
I agree, and I would like to make one additional point:
3. If either Z160 trial is positive, Dr. Corrigan will release the positive trial news first. This is why he is saying the news will be released during the 4th quarter.
On April 18, 2013, Zalicus received notification from the NASDAQ Listing Qualifications Department noting that the company’s application to list its common stock on the NASDAQ Capital Market has been approved. Subsequently Zalicus made the switch from the NASDAQ Global Market to the NASDAQ Capital Market on April 23, 2013.
In connection with the transfer of the listing of the company’s common stock to the NASDAQ Capital Market, Zalicus expects to be granted an additional 180 days, or until October 21, 2013 to regain compliance with the minimum bid price rule by maintaining a minimum closing bid price of at least $1.00 for ten consecutive business days.
At the company’s 2013 annual meeting of stockholders, planned to be held on June 6, 2013, stockholders will vote on a proposal to authorize a reverse stock split. If this proposal is approved by the company’s stockholders, the Board of Directors could approve and implement a reverse stock split that could allow the closing bid price to be at least $1.00 per share. We suspect a 1-for-10 reverse split will take place, putting the stock at roughly $6.00 per share, sometime during the third quarter 2013.
At this “more shareholder friendly” price, with a market capitalization of only $75 million, with downside supported by the growing top-line and upcoming phase 2 data on Z160, Zalicus stock could be an interesting play later this year.