Have a mother in retirement home in SF Bay Area. They are on TB alert and are tested regularly. She says authorities there are concerned with the prevalence of TB even in the upscale communities due to all the international travel and high number of international workers from the high tech industries.
Who knows, maybe major airports will have a Gen-Expert for quick tests on travelers or airplane air quality.
Dad - what do you think is going on here with steady share price increase? Are you thinking that there is a significant milestone about to happen? There is always the buy out option. I have never been involved in a short squeeze that didn't have some significant positive news to spark and fuel the fire. I would not think that slipping from negative into slightly positive quarterly earnings would justify this high a share price. And I am not sure a generally positive market would float this boat this high.
Thanks for feedback. I did sell 25% of my remaining stake above $44, my target and now will hold the rest for the long term if CPHD business progress continues.
Hoping the little train just keeps on going!
Appreciate thoughts on the recent increase in share price. I am pleasantly surprised at this point, particularly following another losing quarter. Will the cervical cancer test really add that much revenue to CPHD? Is someone or some company accumulating shares for buyout or other purpose? Shorts covering? Price is approaching my planned sales point of $44 for 1/2 my shares. I am reconsidering if this is a wise time to sell even some of my remaining position.
I agree. This is starting to remind me of NOVN, Noven Pharma. Afters years of holding the stock, it finally became profitable. The CEO, who was already overpaid, took 1/4 of the total annual net profit just for his bonus alone. Despite my belief that they had good technology and pipeline, I sold. Looking to me like CPHD has the same problem.
While $(0.02) loss was a lot better than $(0.32) quarterly loss (or $0.09 loss if litigation taken out) , we are still not to net income for shareholders. Looking over the report I saw a few items that raised questions in my mind:
1. Why is the company granting itself $29 million in stock compensation expenses when shareholders are still consistently losing money?
2. Why do we have a 26% increase in sales expenses?
3. Why are we achieving a 20% increase in sales, but a 34% increase in the cost of those sales?
4. At year's end, if the company has non-GAAP net income, why does the # of shares increase 7.5% from 67 million to 72 million? With non-GAAP net income, shareholders are still losing money.
Seems to me that the executives are granting themselves a lot of compensation for company results that are bottom line - still negative. Am I missing something here???
Seems to me this company could now be positive GAAP net income with some cost controls, particularly on compensation.
SUNNYVALE, Calif., Oct. 17, 2013 /PRNewswire/ -- Cepheid (Nasdaq: CPHD) today reported revenues for the third quarter of 2013 of $100.1 million, representing growth of 24% from $80.5 million for the third quarter of 2012. Net loss in the third quarter of 2013 was $1.4 million, or $(0.02) per share. This compares to net loss of $21.3 million, or $(0.32) per share, in the third quarter of 2012, which included a charge of $15.1 million, or $0.23 per share, associated with a litigation settlement.
Excluding employee stock-based compensation and amortization of purchased intangible assets, non-GAAP net income for the third quarter of 2013 was $6.6 million, or $0.09 per share. This compares to non-GAAP net income of $0.9 million, or $0.01 per share, in the third quarter of 2012.
"Cepheid delivered a record 574 GeneXpert Systems in the third quarter of 2013, bringing our cumulative, global total to more than 5,000. This includes 1,400 systems in the US where there are now more GeneXpert systems in use than any other clinical molecular diagnostic system," said John Bishop, Cepheid's Chairman and Chief Executive Officer. "With our fast-growing menu of Xpert tests, including most recently Xpert CT/NG and Xpert MTB/RIF here in the US, Cepheid is fast emerging as a broad, global leader in the molecular market."
I did not hear anything about the 4th biopsy in the current Phase II trial. I recall hearing that in the Phase III trial they will have enough participants to allow a sampling regime for biopsies to reduce the number of patients affected.
This issue was just addressed in SRPT webinar. CG said they may be able to use the control boys from the Disper trial in the upcoming Ep trial, but not the treated boys. CG said they are exploring another test group outside the Phase III Ep trial to include the treated boys from the Disper trial.
I too thought I heard lack of enthusiasm in most of the voices from the DMD organizations. I heard some praise for SRPT but not enthusiasm. And the questions seemed to be those that required an "we don't know" or "we can't do" answer.
Highlights that I picked up:
1. presented all the existing data up to 96 weeks.
2. promoted Skip Ahead website and genetic testing program with PPMD.
3. Now going after exons 45, 53, 50 and 44; for 45 and 53 the pre-IND mtg is complete for other two, the pre-IND mtg by the end of 2013.; expect new drug IND application by end of 2014. Open IND by 2015(?)
4. about 12,000 patients in US and EUR for the 5 exons and I thought I saw about 25-30,000 total patients for about 20 exons. good graph; after the most prevalent 6 exons, the number of patients with others drops off significantly.
5. SRPT has a path to class approval; 3 steps; Step 1 is ongoing work with exon 51; step 2 is safety and efficacy for the next 4 exons; step 3 is standardized manufacturing process.
6. Manufacturing (CMC) meeting with FDA in Oct; FDA clinical mtg in Nov; Manufacturing update mtg in Dec. NDA submission in 1H 2014.Expect first patient to be treated in Phase III trial in 1Q 2014.
7. NDA for Ep takes 60 days for FDA acceptance; then 6 months for priority review of 10 months for standard review; get a day 74 letter about use of advisory committee.
8. In the Question phase: planning on 20 different exon skipping drugs; won't use non-ambulatory boys in exon 51 trial as the 6MWT is so critical to results; want FDA to grant broad label to include non-ambulatory boys; want to learn safety and efficacy for non-ambulatory boys.
9. SRPT seems to be hoping for Accelerated Approval and not adversely affected by Disper's results; I heard concern that FDA may now be cautious.
10. Per cardiac function - SRPT studies did not evaluate as boys were young, but will follow over long term. So far no loss of cardiac in test boys and evidence that at least some Ep is getting into heart.
11. Treating double exon skipping is lower priority than getting the package of 20 drugs out for single exon - but up to patient's doctor and FDA.
12. Chris pushing hard on partnerships with the various DMD orgs on the call
Great front page article on "revolutionary drug" to kill superbugs. Highlights:
"Unlike any antibiotic on the market now", quoting Bruce Geller at OSU.
Geller says more animal studies are needed before human trials. Will take 5 years or more.
US death toll is 23,000/year from superbugs.
2 million get sick annually from superbugs.
Mentions PPMO and Sarepta.
Study supported by NIH and others.
Many of us have been on this train for a number of years. I am starting to lose my patience. I expected CPHD to have positive earnings by now. I hope the Q3 report is much more positive than the last few quarters. I am still concerned about their deal to sell cartridges at hugely discounted prices. We all debated this at the time; that discount prices to poorer countries were humane - yes - and needed to open markets - yes. But they also needed to be sure they priced their product to be sure the company becomes and stays viable/sustainable and that shareholders are rewarded.
Would appreciate thoughts of those with good knowledge of CPHD about how you are seeing the future of CPHD - Stellar, '06, ahro, etc.
I had planned to sell 1/2 my holdings at $44 and hold the other half well into retirement. May need to reevaluate this strategy. Thanks all.
I am surprised by the steady drop in CPHD. With all of the production limitations out of the way, I thought CPHD would stay in the high $30s until better revenue and profit reports come in each quarter, then move on into the $40s.
Have I missed something important on future revenues and profits?
CPHD is starting to get back down to buying levels again.