Mid-Week Update: Expenses, Strategic Partnerships and Paying for Clinical Trials

We check in with our Alpha candidates to see non-exciting price movement. Earnings season is getting ready to ramp up again. No doubt that investors are sitting on their hands waiting to see if the investments made in previous quarters are finally going to equate to cash flow.


Let’s jump right into our mid-week update for our biopharmaceutical candidates…

First up, we’ve got Aeterna Zentaris Inc. (AEZS). Aeterna Zentaris is a biopharma company focused on serving patients with Adult Growth Hormone Deficiency. The company’s main product is Macimorelin which has been demonstrated to be a safer and simpler option for testing.

The company reported its first quarter results on May 7th. For the first quarter of 2019, the company saw a net loss of $4.9 million. This was compared to a net income of $14.4 million for the same quarter last year.

Whenever we see a loss, we want to see the why. Sometimes it’s something to worry about, and sometimes it just makes sense. If the company is getting ready to announce new products or new agreements, then it makes sense that there is more money flowing than in.

Aeterna Zentaris just announced in January that the European Medicines Agency granted marketing authorization for Macimorelin. That means investing and making sure that everything is in place for marketing authorization into another continent.

The company also announced in March that the board formed a special committee to review strategic options available to the company. We can see that the management know that something needs to change and it’s working toward making the decisions that it needs to for continued success.

Shares opened on Monday at $2.88 and closed yesterday at $2.74. That’s a loss of 4.8% over the first two trading days of the weeks.

Next up, we’ve got PDL BioPharma Inc (PDLI). PDL Biopharma looks for value by acquiring commercial and late stage pharmaceutical assets with growth potential. PDL’s primary subsidiaries are Noden Pharma, LENSAR and Evofem Biosciences: a specialty pharmaceutical company, a medical device company and a clinical stage woman’s health company.

The company announced it’s first quarter earnings on May 9th. Net revenue was up 14.4% when compared to the same quarter of the previous year. LENSAR saw reported revenues increase of 35% when compared to the same quarter of the previous year. That increase was balanced out by new R&D efforts to enhance technology and build value.

The Noden subsidiary was busy taking actions to increase the profitability of the drug Tekturna to mitigate the impact of generic competition. And it was busy partnering to launch drug Rasilez in China.

The Evofem is a newer addition and is listed on the Nasdaq itself, but PDL has an equity stake. Evofem has the goal of developing innovative products to address unmet need in women’s sexual and reproductive health. It’s an opportunity for PDL to take an active role in the development of the products that Evofem has in clinical trials and get them to market.

Shares opened on Monday at $3.11 and closed yesterday at $3.16. That’s a gain of 1.6% over the first 48 hours of our Alpha contest.

Finally, we’ve got ANI Pharmaceuticals Inc (ANIP). ANI Pharmaceuticals develops, manufactures and markets top quality prescription pharmaceuticals in its facilities in Ontario and Minnesota. The company has a portfolio of over 200 products including both generic and branded drugs.

The company reported its first quarter earnings on May 9th. For the first quarter of the year, the company saw net revenues increase 14% when compared to the first quarter of the previous year. Net income, however decreased when comparing the two quarters.

Product development expenses increased by 108% as the company continues to advance the re-commercialization of Cortrophin gel and continue development of other products. We’ve said it before, you have to spend money to make money. When looking at the first quarter, generic product revenue increase 36%. This doesn’t include cash flow from the two generic products launched in late March that were no doubt part of the increase in product development expenses.

Arthur Przybyl, President and CEO explained that the company had a strong start to the year and reaffirms its guidance for the fill year.

Last month ANI announced that is acquired a pipeline of seven development stage generic products from Coeptis Pharmaceuticals Inc. Also, in June, the company announced that it has received FDA approval of its Vancomycin Hydrochloride for oral solution. At the end of the month, ANI announced the launch of Ranitidine capsules which is used in the short-term treatment of duodenal ulcer patients.

Shares opened on Monday at $83.44 and closed yesterday at $82.24. That’s a loss of 1.4% over the first two days of the trading week.

That makes PDL BioPharma Inc our mid-week leader since it’s the only one that saw a gain so far. We’ll check in with our candidates Saturday morning during our Week In Review. We’ll see if PDL kept its lead through Friday and we’ll cover anything you may have missed over the week.

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