Small capitalization late-stage pharmaceuticals can often escape the interest of the investor masses due to a host of reasons ranging from lack of public awareness, difficult to comprehend product models, small targeted markets, previous clinical failures or a multitude of other reasons. However, as key catalyst dates approach investor interest may quickly appear/return with sharp share price increases benefiting those with the foresight or luck to have long positions well before the masses. I wish to present what I believe to be three late-stage (having Phase 3, pivotal studies underway) pharmaceuticals that could offer substantial upside in the days, weeks or months ahead in anticipation of data release. There are many ways to invest in such catalysts ranging from a "biorunup" approach which consists of a complete or partial exit just before the data are presented (eliminating much of the risk associated with a possible clinical failure) to the long positions in which shares are held through the data presentations but then exited upon share spikes after positive data (hopefully) are presented. Some investors may even opt to hold all or part of the original shares through New Drug Applications (NDAs), FDA advisory committees or even regulatory decisions in the form of FDA decisions. Regardless of the investment strategy utilized, solid (and early) entry levels help to maximize the potential gains and guard against more substantial losses than later entries when share prices have started trending higher.
PLC Systems (PLCSF.OB) is the smallest market capitalization company I wish to present. With a market capitalization of $5.4 million and a 52-week range of $0.11-$0.34, the company is currently flying under the radar. Is PLC Systems trading at these levels due to it only having early stage clinicals with no marketed product? Actually, it is quite the opposite. On December of 2007, the company received the European CE Mark for its RenalGuard System™. The product is