Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH) Is a Tale of Two Halves

Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH)

Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH) is a saga in development. ANTH shares have a 52-week low of $0.51 and a 52-week high of $4.90. They have class-action law firms seeking clients to sign up on a lawsuit alleging that the biotech company made materially false or misleading statements. In December ANTH shares hit their 52-week low and yesterday an analyst forecast a substantial rise in FY 2017 earnings.

Performance for Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH) bears out their shareholder’s erratic fortunes. For the year, ANTH is down over 84%, but YTD the stock is up 6.7%. At the current levels ($0.70-ish), cash/share is around $0.45. On top of that, Zack’s analysts have increased their consensus 2017 earnings estimate by over 21%. Their cash position and revised consensus earnings estimate are good news and today the market is responding to it by sending ANTH shares up over 20%.

On the downside, a class-action lawsuit is hanging over Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH) regarding alleged materially false and/or misleading statements concerning the potential efficacy and success of its Solution Study and CHABLIS-SC1 clinical trials, as Anthera allegedly failed to disclose that: (i) patients were not improving in the CHABLIS-SC1 clinical trial; and (ii) there were dosing problems inherent in the Solution Study design that created challenges to obtaining responses.

The lawsuit followed on the heels of a December press announcement regarding the company’s drug candidate, Sollpura, missing a primary endpoint for its Phase 3 study. The study examined the drug in cystic fibrosis patients with exocrine pancreatic insufficiency. Shares of Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH) dropped over 66% on the news.

Still, ANTH remains a darling of traders as volumes demonstrate. Institutions still own 37% of the outstanding shares but that ownership has declined recently. Short-sellers hold a position equivalent to over 15% of the float, however the large volumes that trade daily only give ANTH a short ratio of 2.93. The consensus price target from analyst that cover Anthera Pharmaceuticals, Inc. (NASDAQ:ANTH) is $1.18.

3/9/2017
Ticker Symbol ANTH
Last Price a/o 9:34 AM EST  $                      0.71
Average Volume                1,970,000
Market Cap (mlns)  $                    31.70
Sales (mlns) $0.10
Shares Outstanding (mlns) 45.78
Share Float (mlns) 36.83
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 15.70%
Short Interest Ratio 2.93
Quarterly Return -53.83%
YTD Return 6.69%
Year Return -84.10%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy. 

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Author: Marcus Anderson

Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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