Cempra Inc. (CEMP) is in clinical trials with solithromycin [CEM-101], which I think is the most important antibiotic to come along in a while. It will hit the market within a short period of time.
Solithromycin has proven itself repeatedly. It's in Phase 3 studies for oral and intravenous use for community-acquired bacterial pneumonia. Solithromycin is being tested as a step-down therapeutic, which means the same drug can be used in an oral or intravenous form. It is a money-saver for the healthcare system. A patient could come to the emergency room with a dangerous infection, be treated intravenously, and then be released once the infection is under control with the oral dose, rather than being admitted for several days to receive periodic intravenous medication. Cempra also is the beneficiary of BARDA funding. I like Cempra's technology very much, and the company has more than one antibiotic in development. It has a Phase 2 candidate, Taksta [fusidic acid], in acute and chronic methicillin-resistant staphylococcus aureus [MRSA] infections and prosthetic joint infections.
Cempra is not only fully committed to developing antibiotics, it also has the ability to do it by itself. It is a strong company and has been able to attract partners from around the world. I believe that Cempra is primed to deliver. For full disclosure, we did act as a financial advisor on one of its transactions.
Undervalued at current level
Zacks uses a computer software program which automatically gathers a bunch of irrelevant data points then spits out a buy/sell/hold rating. There is no human analyzing the stock. To say the least.. their ratings are horrid.
Now that this is out of the way. DSCI is a solid company. If DSC127 is a success, a market cap of $1B isn't far fetched, but of course this is over a rather long period of time.
Lets start out with what they have:
As of Sept 30, 2013
$5M cash + $20M short term investments = $25M total
What they burn per quarter: ~ $5M
So lets revise what they have: ~$20M right now
They dont anticipate completion of P3 until 2Q 2015. $20M cannot last this long. Another large issue is they said themselves they are ramping up the P3 trial and it will cost more money (I wouldnt be surprised to see a 50-100% increase in costs). They were having trouble with enrollment, so im sure they will be spitting out the $$ to try and catch up. Once they do complete the trial, there will be regulatory costs for NDA filing and then more costs for sales reps.
The $75M shelf is a precursor to an offering. IMO they need the whole $75M to avoid any further dilution from now until PDUFA date.
Hi skipper. Thanks for the sales figures and info. What is your opinion on DSC127? I havent had the time to read the the clinical trial info yet (final exams this week). I did see their investor presentation and the info on there looked promising.
I am following. Looking to enter around $10 if I can get in. They have revenues, but still ending in red every quarter. Looking forward to the P3 DSC127 results
Whoa. A person on a yahoo message boarding claiming to enter and exit at specific times to indicate a profit! Wow!! I have never seen it before!!!
How did a Mr. know nothing like me buy in DRTX before you even knew it existed? That must mean you know less than nothing... Wash your finger please
LOL you people are funny, defending these stocks like they are your mother
Its very simple: buy BOTH of them, TSRX and DRTX. Why not make money on both?
If we are comparing drug vs drug, TSRX wins hands down. BUT, if we are comparing monetary gain from owning these stocks, its pretty even right now.
Cramer is not a pharmacist or MD... He doesnt even know how to read a PR that was just recently released saying the exact opposite about what he said today about the the MAOI's
Why do you think it will be on the market faster? They both seem to be at the same stage..
There is a reason why its half the market cap. Oral formulation is folds better than IV only, plus you need to get another IV after 7 days. I am long both, but TSRX is better