Oh, and Milano is presenting at the JMP conference in New York on Tuesday. Timing seems about right...
Tetraphase won't trade with a market cap of $100m or they will be acquired. $189m in cash, no debt on the balance sheet. Biotech's that have a reasonable shot at getting FDA approval trade at $300m market cap or more. There's about 300% upside from here to Q4 2017, price target $12. Acquisition price $15. Watch the insider buying start.
All they need to do is get one indication approved. Doctors will use this off label for many MDR bacteria.
Another way of looking at it:
Merck bought Cubist for $8.4b
Actavis bought Durata for $675m
Tetraphase is simply undervalued at these levels making it a takeover target. I see 4-6x upside.
Here's my view:
- Eravacycline works, that's already been demonstrated in multiple trials.
- There is a public health crisis with multi drug resistant pathogens.
- Data at ECCMID last month demonstrated excellent MIC against numerous carbapenem-resistant strains of gram-negative bacteria.
- They have $189m cash, and a market cap of $109 million based on after hours trades.
Today's announcement removes all uncertainly from TTPH. I suspect you'll see insider buying at these levels. I will be buying at anything under $4.
We already know the drug works. It's just a mater of paperwork at this point. Backing up the truck here...
You don't trade below cash value when you have Phase 3 drug that's already been shown to work. Approval at this point is a formality. Sales would be swift as well, there's a huge unmet need for next generation antibiotics.
This is now a value stock at these levels especially given that we already know eravacycline works against multiple resistant strains of gram positive bacteria.
Why can't this company catch a break? How much lower will it go. I'm about to throw in the towel.
Check it out.
WASHINGTON — Top U.S. health officials told Senate panels Thursday that $1.8 billion in emergency funding is urgently needed to help protect pregnant women from the Zika virus that has been strongly linked to the microcephaly birth defect that causes abnormally small heads and incomplete brain development.
Tom Frieden, director of the Centers for Disease Control and Prevention, urged lawmakers to approve new funding for Zika prevention rather than taking the money away from efforts to fight Ebola, which has been contained after the massive outbreak in West Africa in 2014 but has not been eliminated.
CHK market cap is 1 Billion. They have about 21 Billion in Assets and 17 Billion in liabilities. So in theory couldn't Exxon or Cheniere step in and purchase CHK for 1 Billion and effectively net a company worth $4 Billion (21 Billion Assets - 17 Billion Liabilities). Moreover, those assets fluctuate based on the price of Oil and Nat Gas, arguably for the right buyer those assets could be worth 2-3x a few years from now. What am I missing?
Related question, could Chesapeake be buying back debt on the open market at discounted prices, effectively reducing their outstanding notes at a significant cost savings? Or is their something that prevents them from doing so?