Significant Catalysts, Company PR Error Present Buying Opportunities
Scott Matusow | Mar 18, 2013 08:25AM ET
is a specialty pharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of acute and breakthrough pain. Its lead product, ARX-01, is designed to address intravenous (IV) PCA problems which can cause harm following surgery. This includes side effects of the invasive IV route for morphine delivery and inherent potential programming and delivery errors associated with the complexity of infusion pumps. ARX-01 uses the generic pain medication sufentanil, which is a common anesthetic agent. The difference is in the method of delivery through AcelRx's patented NanoTab technology. Patients receive their dosage of sufentanil sublingually (under the tongue) through this system, instead of the traditional IV drip. AcelRx emphasizes that sublingual delivery of sufentanil through its Nanotab system allows for more prolonged plasma levels relative to IV, a lower maximum concentration, as well as a more consistent concentration during dosing.
The post-operative pain market in the United States, Europe, and Japan has been growing steadily over the last few years and is expected to reach conference call . Rumors of potential suitors are linked to nearly every biotech that nears FDA approval, and AcelRx is no exception. Big Pharma will almost certainly come calling soon, and King has done an admirable job positioning the company for any partnership or buyout talks. With a healthy cash position, a realistic rollout plan, a marketable story of patients and nurses preferring ARX-01, and a manufacturing agreement already in place, King will be negotiating from a position of strength.
Regardless of any partnership or buyout thoughts, AcelRx is a company I am comfortable with for at least a short term trade and potentially long term because of its upcoming catalysts and position in a huge market. In addition, they just did a cash raise which gives them approximately $60 million to work with.
Considering the company's solid cash position, positive late stage data, along with the substantially large market potential of its pipeline and a market cap of around $100M, Acelrx is both a strong long based trade and speculative long term investment.
My shorter term catalyst trade target opinion is 6.25, with a one year price target of $12.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.