James Marion

James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.
Capstone Turbine Corporation (NASDAQ:CPST)

Capstone Turbine Corporation (NASDAQ:CPST) Cost Cutting Drive

Capstone Turbine Corporation (NASDAQ:CPST)

Capstone Turbine Corporation (NASDAQ:CPST) shares fell 7.76% after the leading manufacturer of microturbine energy systems announced a reduction in its quarterly operating-expense target. The company has lowered, following the restructuring of engineering assets and other cost reduction activities, its target from $5.5 million per quarter to $5 million.

CPST Stock Performance

Shares of Capstone Turbine had initially recorded a new 52-week high of $1.38 a share after Oppenheimer analysts upgraded the stock to an ‘outperform’. However, the stock came under pressure in Friday’s trading session as it dropped to end the week at $1.70 a share.

Capstone Turbine Corporation (NASDAQ:CPST) is currently trading in an uptrend despite Friday’s sell-off. A price target of $2 by Oppenheimer analysts appears to have strengthened sentiments on the stock. The analysts see potential upside in the stock price, given that the company is set to move its manufacturing operations to a more affordable space as it also continues to aggressively manage its supply chain.

 

Capstone Turbine Corporation (NASDAQ:CPST) has also announced that it is completing the previously announced $5.2 million retrofit program. The program seeks to upgrade non-signature series C100 and C200 microturbine to provide improved performance and reliability.

Capstone Forecast

According to Capstone Turbine Corporation (NASDAQ:CPST), improved reliability of the microturbine coupled with high performing Signature series microturbine could drive higher gross margins in the accessories, parts, and service divisions.

“We need to drive Capstone to profitability as quickly as possible in order to fuel Capstone’s launch to the next level of product development and market penetration. Our aftermarket service business growth is a critical element of our multi-point strategic plan to quickly achieve Adjusted EBITDA breakeven,” said CEO Darren Jamison.

Capstone Turbine Corporation (NASDAQ:CPST) is targeting revenues of up to $10 million, on gross margins of 50%, for its accessories, parts, and service business. The company has moved from a high-cost, three department research and development effort to a single consolidated department in pursuit of lower costs and improved efficiency on product optimization. Operating expenses as a result dropped 42% from $10.5 million as of Q1 2016 to $6.1 million in Q3 2017.

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: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

CASI Pharmaceuticals Inc. (NASDAQ:CASI)

CASI Pharmaceuticals Inc. (NASDAQ:CASI) Falls After Pricing

CASI Pharmaceuticals Inc. (NASDAQ:CASI)

CASI Pharmaceuticals Inc. (NASDAQ:CASI) shares fell 25.3% after the biopharmaceutical company announced the signing of definitive agreements with certain institutional and accredited investors. Pursuant to the agreement, the company will sell an aggregate of 7.95 million shares of its common stock and warrants for the purchase of additional shares.

CASI Pharmaceuticals Inc. (NASDAQ:CASI)

Public Offering Reaction

Investors reacted to the news by sending the stock lower as the issuance of shares will result in further dilution of the stock. Last week’s sell-off is already threatening to reverse a bullish run that had pushed the stock to a 52-week high of $4.84 a share. Over the past few days, the stock has shed more than 40% in market value. However, it is still up by more than 100% for the year.

The biopharmaceutical company is expecting approximately $23.8 million from the registered direct offering. Net proceeds from the offering are to be used to support business development projects.

In addition, CASI Pharmaceuticals Inc. (NASDAQ:CASI) Chairman Dr. Wei-Wu He has echoed his support for China’s FDA push to accept data from clinical trials outside China. According to the executive, the move will accelerate approval of imported drugs.

“We believe this could potentially accelerate our pipeline of U.S. approved drugs that are currently under China FDA review, namely EVOMELA®, which has been granted priority review; and MARQIBO® and ZEVALIN®. We look forward to accelerating these medicines to the second largest pharmaceutical market, and will continue to add on to our pipeline,” said Mr. He.

CFDA Import Drug Accelerated Approval

China’s FDA has already granted a priority review for EVOMELA, for the treatment of multiple myeloma, which is classified as a rare disease in the country. The agency is also reviewing an application for approval of MARQIBO for the treatment of adult patients with Philadelphia chromosome negative lymphoblastic leukemia. A review of the drug is set to be complete in the next four to six weeks.

The CFDA is also reviewing, CASI Pharmaceuticals Inc. (NASDAQ:CASI) import drug clinical trial application (CTA) for ZEVALIN. The intravenous injection is indicated for the reduction of the number of B-cells in the blood and for the treatment of non-Hodgkin’s lymphoma (NHL).

“[..] it also is a positive signal from the CFDA to accelerate the import drug registration process for U.S. FDA approved drugs in order to address the significant unmet medical needs of the Chinese population in an accelerated time frame,” said CEO, Ken Ren.

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.

Don’t miss out! Stay informed on $CASI Symbol and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Traders Cautious on Jump in Leading Brands, Inc (USA) (NASDAQ:LBIX) Stock

Leading Brands, Inc (USA) (NASDAQ:LBIX)

Nano-cap Leading Brands, Inc (USA) (NASDAQ:LBIX) stocked rocketed over 68% Friday to end the day at $2.27 on volume over 128 times its 30-day, daily average.

Leading Brands, Inc (USA) (NASDAQ:LBIX)

About Leading Brands Inc.

Nano-cap Leading Brands, Inc (USA) (NASDAQ:LBIX) is headquartered in Vancouver, BC, Canada. It develops, markets, and distributes beverages in Canada, the western United States, and Asia. The company’s core product lines include premium spring waters and fruit juices. The company was formerly known as Brio Industries Inc. and changed its name to Leading Brands, Inc. in October 1999.

Some nano-cap observers believe the dramatic increase of Leading Brands, Inc (USA) (NASDAQ:LBIX) stock last week could be due to speculation that traders may be betting on a play in the near future by a braoder market than usual based on the recent moves by former nano-cap Helios and Matheson Analytics Inc (NASDAQ:HMNY). HMNY shares are up over 675% in the past month.

However, it should be noted that while LBIX shares have increased 134% over the past month, the beverage company has not released any news that would point to a dramatic increase in revenues or earnings as Helios and Matheson Analytics did.

LBIX Stock

In 2015, Leading Brands, Inc (USA) (NASDAQ:LBIX) posted sales of $400,000 and that sales figure improved to $1 million for 2016. Also to the benefit of LBIX shareholders is the fact that, according to reports, the number of outstanding shares has declined each year since 2013. However LBIX shares have posted per share losses each of the last three years, In 2015 investors lost (-$1.05) per share, (-$1.09) in 2015, and (-$0.88) for 2016.

Until last week, shares of Leading Brands, Inc (USA) (NASDAQ:LBIX) had been sliding since May when they last hit $2.27. The price action on Friday saw LBIX shares hit an inter-day high of $3.75 which is considerably over their 52-week high of $2.92.

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.

Don’t miss out! Stay informed on $LBIX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Big Move for Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Clean Diesel Technologies, Inc. (NASDAQ:CDTI) stock rocketed up over 28% in Friday’s trading on the back of over 5 million shares traded – over 35 times the stock’s 30-day, daily average. The Thursday close of $1.65 was just $0.13 above the 52-week low of $1.52 which was hit in August. However, CDTI shares are still over 43% below their 52-week high of $3.72 that was hit last May.

Clean Diesel Technologies, Inc. (NASDAQ:CDTI)

Clean Technologies Business Model

Clean Diesel Technologies, Inc. (NASDAQ:CDTI) is a global manufacturer and distributor of heavy duty diesel and light duty vehicle emissions control systems and products to major automakers and retrofitters. Accordingly, their business is largely moved by legislation addressing global emission standards in response to government concerns over the effects of fossil fuel usage.

The company has two revenue producing channels. Their Heavy Duty Diesel Systems Division specializes in the design and manufacture of verified exhaust emission control solutions. Their Catalyst Division produces catalyst formulations for gasoline, diesel and natural gas-induced emissions.

CDTI Stock

Clean Diesel Technologies, Inc. (NASDAQ:CDTI) has a market capitalization under $50 million and CDTI is considered a micro-cap stock. However they have considerable sales revenues for a company their size although the figures have been declining. In 2012, Clean Diesel Technologies, Inc. (NASDAQ:CDTI) reported sales of $60.5 million. That number has declined year-on-year and for 2016 the reported figure was just $36.8 million. Earnings have not been pleasant for the investors either. In 2012 the loss was (-$6.71) per share. That figure shrank each of the successive three years and in 2015 the per share loss was only (-$2.67). Unfortunately, the loss expanded in 2016 to (-$3.84). Dilution has also weighed on CDTI stockholders. The number of outstanding shares has increased from 1.45 million in 2012 to 6.11 million in 2016.

The consensus target price for CDTI stock is $3.00 – around 48% higher than where the shares are currently valued.

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.

Don’t miss out! Stay informed on $CDTI and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Real Goods Solar, Inc. (NASDAQ:RGSE)

Real Goods Solar, Inc. (NASDAQ:RGSE) Awarded New Haven Contract

Real Goods Solar, Inc. (NASDAQ:RGSE)

Real Goods Solar, Inc. (NASDAQ:RGSE) shares gained 23.5% after Solarize New Haven selected the solar company to provide solar electricity to homes and business in New Haven, Connecticut. The campaign is to begin on October 18, 2017, and set to run through March 7, 2018. Smart Power, the nation’s leading nonprofit marketing firm, has been selected to market the campaign as it is experienced with community-based energy programs.

“We are thrilled to be joining forces with Solarize Connecticut once again for what we believe will be another successful Solarize program,” said Tom Champlin, Director of sales at RGS Energy. “We will provide our exceptional service to New Haven, supported by our 31 local Connecticut employees, based out of our 10,000 square foot, centrally located, warehouse in Bloomfield.”

Overall, Real Goods Solar, Inc. (NASDAQ:RGSE) shares have suffered in the market. RGSE stock is down by more than 70% for the year. However, the stock has shown some signs of recovery as investors react to the signing of an exclusive domestic and international license agreement with Dow Chemical Co (NYSE:DOW).

Real Goods Solar, Inc. (NASDAQ:RGSE)

RGS Energy – DOW Agreement

Under the terms of the agreement, RGS is to lead commercial activities for the POWERHOUSE solar shingles stem, developed by DOW.  The company is also to handle supply chain management, marketing, sales installation, and warranty.

The POWERHOUSE solar shingles are designed to be aesthetically more pleasing than a traditional solar array.  RGS plans to expand the network of authorized local roofers to achieve lower cost of customer acquisition as it moves to market the shingle.

The company also plans to engage in direct sales with new home builders in a bid to attract more orders. RGS will also expand its call center and digital marketing program to aggressively market the product.

“We believe that RGS is well positioned to optimize the market potential for POWERHOUSE™ 3.0 solar shingles system. The design of POWERHOUSE™ 3.0 solar shingles addresses the critical requirements of customers and installers and achieves a price point that will be very competitive,” said Kirk Thompson, Business Director of Dow Solar.

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.

Don’t miss out! Stay informed on $RGSE and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Insys Therapeutics Inc. (NASDAQ:INSY) Sued

Insys Therapeutics Inc. (NASDAQ:INSY) Sued

Insys Therapeutics Inc. (NASDAQ:INSY) sentiments on Wall Street turned from bad to worse, after the embattled specialty pharmaceutical company responded to claims it fraudulently marketed a powerful painkiller. Shares of the company fell 9.35% to end Tuesday’s trading session at three-year lows.

Insys Therapeutics Inc. (NASDAQ:INSY)

Insys Therapeutics ‘’Fraudulent’ Practices

Investor confidence on the stock continues to hit lower lows after the New Jersey Attorney General accused the company of engaging in a conduct that is ‘nothing short of evil”.

A sell-off wave has pushed the stock to this year’s lows as it continues to trade in a strong downtrend. Insys Therapeutics Inc. (NASDAQ:INSY) is down by more than 10% for the year in an industry that is experiencing strong share growth.

Insys Therapeutics Inc. (NASDAQ:INSY) finds itself in hot water for allegedly directing its sales force to have doctors prescribe its drug, Subsys, for any chronic pain. A point of concern is that the drug was approved only for cancer patients who could not benefit from other opioids.

The lawsuit by New Jersey Attorney General, Christopher Porrino, also alleges that the company paid kickbacks, including sham speaker fees, to medical practitioners as it sought to push for more Subsys prescriptions.

The attorney general’s lawsuit insists that Insys Therapeutics Inc. (NASDAQ:INSY) put hundreds of lives in jeopardy with the illegal practices. One fatality has been reported of a woman who was prescribed Subsys for the treatment of fibromyalgia.

Insys Therapeutics Defense

Insys has quashed the allegations reiterating that Subsys prescription represented about 0.02% of the opioid prescriptions in the U.S. last year. The company says it is working with relevant authorities to resolve issues related to inappropriate action taken by its staff.

“The company is under new management and has replaced 90 percent of the original sales force and commercial organization. While understandable, it’s disingenuous to repeatedly demonize a company that has made a firm and sincere commitment and is taking all the necessary steps to conduct business according to high ethical standards,” Insys Therapeutics in a statement.

Insys Therapeutics Inc. (NASDAQ:INSY) employs about 400 people including scientists, researchers, and physicians who it says are dedicated to coming up with treatment options for various unmet patient needs. However, the company remains under intense scrutiny at a time when opioid abuse is a major public health issue. According to the U.S. Centers for Disease Control and Prevention, there were 33,000 deaths associated with opioid abuse in 2015.

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.

Don’t miss out! Stay informed on $INSY and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Cleantech Solutions International Inc. (NASDAQ:CLNT)

Cleantech Solutions International Inc. (NASDAQ:CLNT) Acquisition

Cleantech Solutions International Inc. (NASDAQ:CLNT)

Shares of Cleantech Solutions International Inc. (NASDAQ:CLNT) nearly doubled in value after the company’s subsidiary, Sharing Economy Investment Limited, entered into an exclusivity agreement with Inspirit Studio. The stock was up by 96% after signing the agreement that paves way for the acquisition of a 51% stake in Inspirit Studio.

CLNT Stock Performance

Cleantech Solutions International Inc. (NASDAQ:CLNT)

The stock is currently trading in a short uptrend as it closes in on its 52-week high of $10.70 a share. CLNT is also up by more than 100% for the year after outperforming the overall industry.

The acquisition of a 51% stake in Inspirit Studio will expand the Cleantech Solutions International Inc. (NASDAQ:CLNT) footprint into the delivery service business. Inspirit Studio is the owner of a mobile platform dubbed Anyway that allows people to provide courier services during commuting times. The platform connects senders and freelance couriers who are willing to deliver letters and parcels for a small fee.

“With Anyway, senders can get speedy responses to contact with our freelance couriers who are in close proximity to the senders. There is no limitation on service area and business hours. With a five-month pilot program in Hong Kong, we have signed up over 2,000 freelance couriers, with over successful 6,000 transactions,” said Inspirit Studio, CEO Kurt Tam

Cleantech Solutions International Inc. (NASDAQ:CLNT) is hoping to generate significant value from Anyway given the growth being experienced in the peer-to-peer delivery business. The Chinese market alone grew from 124 million people in 2014 to 231 million last year, and reports project the marketplace to grow to 353 million people by next year.

Power Charger Renting Business

Separately, Cleantech Solutions International Inc. (NASDAQ:CLNT) subsidiary, EC Power has started to provide mobile power charger rental services through convenience stores in Hong Kong and Macau. The company plans to provide the rental chargers in over 700 store locations in Hong Kong and in over 40 locations in Macau.

The Cleantech Solutions International Inc. (NASDAQ:CLNT) subsidiary also plans to expand the services to other regions. There are also plans to acquire a battery production company to capture the burgeoning market demand. The Chinese battery renting market is set to reach 104 million users by the end of the year and grow to 246 million users by 2019.

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.

Don’t miss out! Stay informed on $CLNT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

EnteroMedics Inc. (NASDAQ:ETRM) Acquires ReShape Medical

EnteroMedics Inc. (NASDAQ:ETRM)

Shares of EnteroMedics Inc. (NASDAQ:ETRM) gained 12.3% after the developer of minimally invasive medical devices announced the acquisition of ReShape Medical. The acquisition of the privately held medical technology company will expand the company’s addressable market and revenue stream.

EnteroMedics Inc. (NASDAQ:ETRM)

ReShape Acquisition

The acquisition will likely compliment the company’s EnteroMedics Inc. (NASDAQ:ETRM) existing products at a time when the company is in dire need of new catalysts. ReShape Medical is the owner and marketer of the FDA-approved ReShape Dual Weight Loss Balloon, designed to treat obese patients with body mass index of between 30 and 40.

Investor confidence in EnteroMedics Inc. (NASDAQ:ETRM) hit at all-time lows as the stock slumped to multi-year lows. ETRM is down by more than 80% for the year after coming under immense selling pressure. Tuesday’s rally did little to strengthen investors’ confidence on the stock as it continued to trade in a strong downtrend.

EnteroMedics Inc. (NASDAQ:ETRM) is in dire need of new products if it is to reinvigorate its growth prospects in the industry. The company has long struggled financially as sales and profits continue to drop. Much of the company’s troubles stem from its flagship device vBloc which lacks coverage from major insurers despite showing promise.

The Chief Executive Officer, Dan Gladney, is however confident about the company’s prospects especially with the acquisition of ReShape Medical.

“EnteroMedics and ReShape Medical are two innovative companies that share a strong strategic focus on providing proprietary, patient-friendly technologies to address the global obesity epidemic. We look forward to combining the complementary expertise and capabilities of both companies for the benefit of our customers, patients, employees, and stockholders,” said Mr. Gladney.

Acquisition Terms

Under the terms of the acquisition agreement, EnteroMedics Inc. (NASDAQ:ETRM) is to add two designees of ReShape Medical to its board of directors. ReShape Medical is also entitled to 2.36 million shares of EnteroMedics common stock, 187,772 shares of series C convertible preferred stock as well as $5 million in cash.

The $5 million cash is to be used to pay ReShape’s outstanding senior secured indebtedness among other transaction expenses. EnteroMedics Inc. (NASDAQ:ETRM) is to hold a special meeting of shareholders on December 31, 2017, to seek approval of the conversion of Series C convertible preferred stock.

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.

Don’t miss out! Stay informed on $ETRM and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Vical Incorporated (NASDAQ:VICL) Candidate Awarded Limited Use Indication

Vical Incorporated (NASDAQ:VICL)

Vical Incorporated (NASDAQ:VICL) gained 7.03% after the U.S. Food and Drug Administration said its investigational antifungal VL-2397candidate drug would be eligible for a Limited Use Indication, pending Phase 2 trial outcome.

Vical Incorporated (NASDAQ:VICL)

Vical Investors Reaction

Vical Incorporated (NASDAQ:VICL) recorded a new 52-week high of $3.70 after the FDA approved the Limited Use of its candidate drug. However, the stock fell to end Tuesday’s trading session and ended at $2.74 a share. The stock is up by more than 5% for the year and traders are waiting to see if it will rise even further on the new designation.

The Limited Use Indication designation is an important milestone. It will allow Vical Incorporated (NASDAQ:VICL) to develop and commercialize VL-2397 on an accelerated basis.

“The preclinical and clinical data to date for VL-2397 supports the profile of an ideal antifungal agent which must be fast acting, have minimal drug interactions, and a low risk for toxicity,” said Dr. Haran Schlamm, MD, Vical’s infectious disease consultant.

Vical Incorporated (NASDAQ:VICL) is in the process of initiating Phase 3 trial of VL-23497 for the treatment of invasive aspergillosis (IA) in acute leukemia patients. The trial will be a non-inferiority study that will seek to compare the candidate drug to the standard of care treatment for IA.

The biopharmaceutical company plans to enroll approximately 300 acute leukemia patients. The primary end for the trial will be “all cause mortality” (ACM) at 4 weeks with the secondary endpoint being ACM at 6 weeks. Vical Incorporated (NASDAQ:VICL) has already partnered Mycoses Study Group Education and Research Consortium for the design and preparation of the proposed trial.

Vical Pipeline

In addition to VL-2397, Vical Incorporated (NASDAQ:VICL) is working on ASP0113, a potential first in class investigational DNA vaccine for the prevention of latent cytomegalovirus. The vaccine is currently in multinational Phase 3 registration trial in HCT patients. Data from the trials is expected in the first quarter of next year.

Vical Incorporated (NASDAQ:VICL) is also developing an HSV-3 therapeutic vaccine, VCL-HBO1 for the reduction of lesion recurrences in patients with symptomatic genital herpes infection. The vaccine is currently being evaluated in Phase 2 study of healthy adult subjects.

Separately, the biopharmaceutical company reported a net loss of (-$3.3) million for its second quarter, up from a net loss of (-$1.3) million reported last year. Revenues in the quarter totaled $3.4 million compared to $4.1 million reported last year. Vical Incorporated (NASDAQ:VICL) had cash and investments of $37.3 million as of June 30, 2017.

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.

Don’t miss out! Stay informed on $VICL and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Ritter Pharmaceuticals Inc. (NASDAQ:RTTR)

Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) Raises $23 Million

Ritter Pharmaceuticals Inc. (NASDAQ:RTTR)

Shares of Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) gained 0.2% after the company announced the closing of a previously announced underwritten public offering. The developer of therapeutic products says it generated gross proceeds of $23 million from the offering.

Ritter Pharmaceuticals Inc. (NASDAQ:RTTR)

Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) intends to use net proceeds from the offering to initiate Phase 3 clinical trials for its novel treatment for lactose intolerance RP-G28. The trial is set to begin in the first half of next year.

The phase 3 program will incorporate guidance from an end of Phase 2 meeting with the Division of Gastroenterology and Inborn Errors Products. RP-G28 is a non-digestible oligosaccharide developed to modulate the gut microbiome by stimulating and adapting bacteria in the gastrointestinal tract.

The pricing of the underwritten public offering did not go well with investors amidst concerns that it would lead to further stock dilution. Investors had initially pushed the stock down by 29%, a sell-off that has plunged the stock to multi-year lows.

Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) faces an uncertain future as its share price has dropped below $1, a requirement for continued listing on the NASDAQ. The stock has underperformed the overall industry after losing more than 80% in market value since the start of the year.

 RP-G28 Phase 3 Trial

The outcome of the upcoming Phase 3 trials for RP-G28 will undoubtedly affect trader confidence on the shares. The company has already held a meeting with the U.S. Food and Drug Administration (FDA) during which it received a clear guidance of what is expected from the trial.

“We are pleased with the productive discussion and open dialog we had with the FDA regarding our Phase 3 plans. We are confident we can execute a successful Phase 3 program furthering our goal to ultimately file a successful NDA and commercialize RP-G28 as the first FDA-approved treatment for lactose intolerance,” said,” said Andrew J. Ritter, co-founder, and president

The trial’s primary endpoint will be the evaluation of patient’s composite L1 symptoms after lactose change. Ritter Pharmaceuticals Inc. (NASDAQ:RTTR) will also evaluate baseline symptoms scores. Secondary endpoints will be to evaluate L1 signs and symptoms and global assessment outcomes.

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.

Don’t miss out! Stay informed on $RTTR and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.