STR’s Chairman, President and Chief Executive Officer, Robert S. Yorgensen commented, “This tax refund is material to the Company, bringing our cash balance, including $1.3 million of negotiable bank acceptance notes, to approximately $15.0 million, as of today.” Mr. Yorgensen continued, “Our current unaudited stockholders’ equity is over $40 million, or about $2.18 per share, with approximately $0.82 per share in cash and negotiable bank acceptance notes.”
“Having these funds available,” continued Mr. Yorgensen, “is an important development for the Company and significantly bolsters our liquidity.”
With the estimated $8M coming from the sale of the Malaysia plant STRI wil have about $23M in cash and no debt.
This is from a recent news regarding the Malaysia plant:
We've also engaged advisers to sell the Malaysia facility and its equipment. As a result of those actions, we expect to be able to convert approximately $8 million of PP&E value back to cash, less $1 million to $1.5 million in associated non-recurring costs. On a going-forward basis, we expect to generate approximately $2.4 million of annual pre-tax savings. The closure of this facility should improve utilization in our encapsulant business allowing us to operate our China facility more efficiently.
Yo do the Math, STRI should easily be trading well North of $1 per share
Mast Therapeutics will announce Phase III results for their Orphan Sickle Cell Disease Drug MST-188 in Q2-2016.
We strongly believe that MST-188 Phase III will be a success.
SCD patients have been waiting for a new treatment the past 17 years. FDA might want to bring a new drug on the markets to sustain the patient lives.
Vepoloxamer compound might work as well for the heart failure. This is the major secondary catalyst for the share price.
Mast Therapeutics (mstx) has a market cap of little over $50m. That is a very low valuation for a company that is shortly going to announce their Phase III results for the Sickle Cell Disease. Their drug vepoloxamer (MST-188) holds an Orphan status in the United States and Europe.
In our opinion the investor community has completely missed the story of MST-188 and the information that is available around the EPIC trials.
EPIC Trial: A High Chance For A Regulatory Approval
The fact that FDA allowed EPIC-E launch is a very positive sign. It signals that there are no major drug safety concerns in the air. Now also the study placebo participants will be receiving vepoloxamer during their subsequent crises in an unblinded manner.
The eventual MST-188 regulatory approval is very likely because:
A…..MST-188 is the only drug for SCD in an advanced development phase. The competition is about 2 years behind.
B…..This orphan drug would be the first proper treatment for the SCD patients in 17 years.
C…..We have not seen any alarming secondary indications. The recent approved launch of EPIC-E is giving even more confidence of the drug safety profile.
D…...The duration of vaso-occlusive crises, hospitalisation time and intake of analgesics were all reduced with the prior sponsor's purified poloxamer 188 drug.
Using Past Purified Poloxamer 188 Data for EPIC Design
Vepoloxamer is a purified version of poloxamer 188 that did undergo Phase III study several years ago with an enrollment of 73%. We discuss here some facts that