Cerecor Inc (NASDAQ:CERC) Threatening New Highs

Cerecor Inc (NASDAQ:CERC)

The uptrend, that began in August, continues for Cerecor Inc (NASDAQ:CERC) stock as it looks to close at its second highest level in a year on heavy volume. The market sent shares higher after the biotechnology company released Q3 earnings this morning.

Cerecor Inc (NASDAQ:CERC)
Cerecor Inc (NASDAQ:CERC) is a biopharmaceutical company that develops drug candidates to address the needs of patients with neurologic and psychiatric disorders. Cerecor’s lead drug candidate is CERC-301, which Cerecor currently intends to explore as a treatment for orphan neurological indications. Cerecor is also developing two pre-clinical stage compounds, CERC-611 and CERC-406.

Cerecor Earnings

Cerecor, headquartered in Baltimore, MD, reported Q3 net income of $18.7 million, or $0.52 per common share, compared to a net loss of (-$6.2) million, or (-$0.70) loss per common share, for the third quarter 2016. The company reported $0.52 income per diluted common share, compared to (-$0.70) loss per diluted common share for the same period last year. Cerecor posted $25 million in license and other revenue from the sale of CERC-501 to Janssen this past August.
Q3 2017 general and administrative expenses increased to $2.2 million, compared to $1.7 million for Q3 2016. This increase was driven primarily by expenses associated with the August sale of CERC-501. As of September 30, 2017, cash and cash equivalents were $24.0 million, escrowed cash receivable was $3.75 million and current liabilities were $4.8 million.

CERC Stock Performance

Cerecor Inc (NASDAQ:CERC) shares began an uptrend after the $25 million sale of CERC-501 to Janssen Pharmaceuticals. Over the past quarter, CERC stock is up over 88%. However CERC shares were trading over $5 at the end of last year, and the drop from those levels is seen in the (-70%) performance over the past year.
Annual earnings have been disappointing for shareholders. In 2014 there was an EPS loss of (-$0.41), followed in 2015 by (-$1.22) loss, and a loss of (-$1.87) for 2016.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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