Aytu Bioscience Inc (OTCMKTS:AYTU) Releases Financial Results and Business Update

Aytu Bioscience Inc (OTCMKTS:AYTU)

Aytu Bioscience Inc (OTCMKTS:AYTU), based in Englewood, CO, delivered Q3, 2017 financial results and a business and growth strategy summary for the three and nine months ended March 31, 2017. Aytu Bioscience Inc (OTCMKTS:AYTU) is a specialty pharmaceutical company that develops products in the field of urology. Aytu is initially concentrating on hypogonadism, prostate cancer, male infertility, and plans to expand into other urological indications for which there are significant medical needs.

Q3, 2017 Financial Highlights:

  • Recorded net revenues of nearly $900,000 – in line with expectations
  • Reduced cash used in operations by 16% quarter-over-quarter to $2.4 million
  • Successfully completed a warrant exchange and received $2.2 million gross from the exercise of warrants
  • Divested Primsol® to Allegis Holdings in the amount of $1.75 million to bring in non-dilutive capital and dispense of a non-strategic product

Aytu Bioscience Inc (OTCMKTS:AYTU) had $3.5 million in cash, cash equivalents, and restricted cash as of March 31, 2017, which does not include the cash and receivables received through the May 5, 2017 acquisition of Nuelle, Inc.

Business Highlights:

  • Prescriptions for Natesto® in Q3 increased 25% over the last quarter
  • Continued to demonstrate increasing international adoption of MiOXSYS®, recording increases in both instrument placements and revenues
  • Presented new clinical data for Natesto’s hematologic safety profile in hypogonadal men as well as the drug’s clinical efficacy and tolerability in hypogonadal men with seasonal allergies
  • Published fourth peer-reviewed MiOXSYS study in the journal Urology demonstrating clinical efficacy as a marker of sperm quality in patients suffering from oligozoospermia
  • Acquired New Enterprise Associates-backed Nuelle, Inc., the developer and marketer of Fiera® as a subsidiary, giving the Company another on market, revenue-generating product in a complementary therapeutic area

Aytu Bioscience Inc (OTCMKTS:AYTU Chief Executive Officer, Josh Disbrow, stated, “Aytu continues to execute on its plan to become a leading specialty life sciences company focused on urological and related conditions. I am proud of the progress that our team continues to make, as demonstrated in our third quarter results. We continue to successfully launch our lead product Natesto in the U.S., and all key indicators remain positive.  It’s still early in the Natesto launch, but we are very pleased to have already eclipsed 100 total prescriptions in a week, which is a pace we didn’t anticipate until midsummer 2017. The trends are encouraging for our goal to develop Natesto as an important and novel therapeutic option for the 13 million men who are affected by low testosterone.”

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance

IntelGenx Technologies Corp. (OTCMKTS:IGXT) Releases Q1 Financial Results

IntelGenx Technologies Corp. (OTCMKTS:IGXT)

IntelGenx Technologies Corp. (OTCMKTS:IGXT) released their Q1 2017 financial results after the market close today. [Note: The company is based in Quebec, Canada but all figures are in $USD]

Total revenues for Q1, 2017 were approximately $1.4 million, an increase of $535,000 or 65%, over Q1, 2016. The increase is mainly attributable to the increase in upfront and deferred revenues, which were partially offset by a decrease in royalties. Operating costs and expenses were $1.8 million for Q1, 2017 versus $1.5 million for Q1, 2016. The increase is generally attributable to a $163,000 increase in Research and Development expenses. IntelGenx Technologies Corp. (OTCMKTS:IGXT) had an operating loss of $457,000, compared to an operating loss of $706,000 for Q1, 2016. Q1, 2016 net comprehensive loss was $468,000 or $0.01 on a basic and diluted per share basis, compared to net comprehensive loss of $707,000, or $0.01 on a basic and diluted per share basis, for Q1, 2016. As of March 31, 2017, IntelGenx Technologies Corp.(OTCMKTS:IGXT) cash, cash equivalents and short-term investments were $3.9 million, compared with approximately $4.5 million at the end of last quarter.

IntelGenx Technologies Corp. (OTCMKTS:IGXT) was established as a biopharmaceutical firm in 2003. The company develops oral drug delivery solutions based on its proprietary platform technologies, VersaFilmTM, VersaTabTM and AdVersaTM. IntelGenx has developed a product portfolio addressing unmet market needs and offering lifecycle management opportunities. Dr. Horst G. Zerbe is President and CEO. Prior to founding IntelGenx, Dr. Zerbe served as the President of Smartrix Technologies Inc. in Montreal, and as Vice President of R&D at LTS Lohmann Therapy Systems in West Caldwell, NJ. Dr. Zerbe holds over 40 patents in drug delivery related fields and has published numerous scientific papers in recognized journals.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Extreme Networks, Inc (NASDAQ:EXTR) Buys Another Data-Center and Shares Rise

Extreme Networks, Inc (NASDAQ:EXTR)

Extreme Networks, Inc (NASDAQ:EXTR) bought Avaya networks in early March. Yesterday evening the company announced it is buying Brocade’s (BRCD) data-center networking business. Brocade’s shares are little changed – up less than 0.5%. However, shares of EXTR are up over 15% in mid-morning trading. EXTR shares ended the regular session yesterday at $6.46 and gapped up to open at $7.90 before hitting their inter-day high of $8.11. Volumes are trading at over 14 times their daily average.

San Jose, CA-based Extreme Networks, Inc. (NASD:EXTR) develops and manufactures wired and wireless network infrastructure equipment. It also develops software for network management, policy, analytics, security, and access controls. It also offers its proprietary ExtremeAnalytics – an analytics application that assists users in optimizing network performance. The company boasts 20,000 customers worldwide.

Following the news of the buyout, two firms reiterated their analyst’s ratings for Extreme Networks, Inc. (NASD:EXTR). DA Davidson reiterated their “Buy” rating with a price target increase from $7.50 to $10. Needham reiterated EXTR shares as a “Buy” and moved their target price from $7.00 to $9.50. It should be recognized that three other analysts rated EXTR shares as a “Strong Buy” prior to yesterday’s announcement.

Today’s price action resulted in EXTR shares nearly reaching their all-time highs. In January of 2014, EXTR shares hit $8.14 – $.03 higher than today’s inter-day high. But Extreme Networks, Inc. (NASD:EXTR) has been performing well. EXTR shares are up over 28% YTD, and up over 108% for the past year.

EXTR shares have a Relative Strength score of 76.53 which is encroaching on “over-bought” territory. Annual sales for the company in 2014 were $519.6 million. That figure was followed by sales of $552.9 million in 2015 and $528.4 million in 2016. Shareholder earnings have been negative. EPS for EXTR shares in 2014 were a loss of -$0.60, then in 2015 there was an EPS loss of-$0.72, followed in 2016 by a loss of -$0.31. Dilutive effects have been less bothersome. In 2014 there were 85.52 million shares outstanding and that number marginally increased to 103.07 by 2016.

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: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.

Does QuickLogic Corporation (NASDAQ:QUIK) Have Good Reason for Dilutive Share Offering?

QuickLogic Corporation (NASDAQ:QUIK)

QuickLogic Corporation (NASDAQ:QUIK) has priced its recently announced share offering and that news has sent QUIK shares down over 10% in pre-market trading. QUIK ended yesterday at $1.80 and is currently trading around $1.60 on exceptionally heavy volumes. The listed average daily volume for QUIK shares is a little over 425,000. However, in the pre-market alone, QUIK shares exchanged hands over 2.5 million times.

QuickLogic Corporation (NASDAQ:QUIK) has 68.16 million shares outstanding. The company intends to issue, through a public offering, and additional 10 million shares at an offering price of $1.50. QuickLogic also granted their underwriters, Craig-Hallum Capital Group, an option to purchase an additional 1.5 million common shares at the same terms and conditions. All shares being offered are being issued by QuickLogic. The filing of the prospectus for the offering was made with the SEC on March 20, 2017.

QuickLogic Corporation (NASDAQ:QUIK) works with original equipment manufacturers (OEMs) to take full advantage of the life of a battery powering a smartphone, wearable, or internet-of-things technologies. The Sunnyvale, CA-based technology firm offers it proprietary eFPGA solution to help manufacturers implement new functions on their hardware without post-production redesign. This approach allows OEM enterprises to develop their product without the worry of having to change it due to ever-changing market demands, thereby shortening the development cycle.

Reliable sources claim that the share offering is not defensive in nature. Rather, funding is required to exploit a market opportunity for its eFPGA solution that was either larger than first predicted or has grown larger at an increasing rate.

Two investment firms follow QuickLogic Corporation (NASDAQ:QUIK). Each rate shares of QUIK as a “Strong Buy” with a consensus price target of $4 although it must be noted that the target price was published prior to the afore-mentioned dilutive public offering.

QuickLogic Corporation (NASDAQ:QUIK) has a lot riding on its eFPGA solution. Since 2013 shareholders of QUIK have experienced EPS losses ranging between -$0.24 and-$0.32. Sales have also trended down. In 2015 sales were posted at $27.8 million. For their fiscal year 2017, sales were down to $11.4 million. Meanwhile the number of shares outstanding has increased from 41.83 million in 2013 to 65.38 million in 2017.

3/23/2017
Ticker Symbol QUIK
Last Price a/o 9:11 AM EST  $                      1.62
Average Volume                    426,650
Market Cap (mlns)  $                  122.69
Sales (mlns) $11.40
Shares Outstanding (mlns) 68.16
Share Float (mlns) 67.08
Shortable Yes
Optionable Yes
Inside Ownership 0.20%
Short Float 6.84%
Short Interest Ratio 10.75
Quarterly Return 45.16%
YTD Return 29.50%
Year Return 62.16%

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.

Is Sunshine Returning to Seres Therapeutics Inc. (NASDAQ:MCRB)?

Seres Therapeutics Inc. (NASDAQ:MCRB)

Seres Therapeutics Inc. (NASDAQ:MCRB) shares closed Wednesday at $9.27, then, on Thursday, MCRB gapped up to open at $10.00 before reaching a high of $13.32 and closing at $12.71. MCRB has a history of gapping and not always up. In the last week of July, MCRB was trading above $35 and gapped down to open below $10. Since that down move, the stock has gapped up three times but none with the force of Thursday’s move which saw a price gain of over 37%.

Seres Therapeutics Inc. (NASDAQ:MCRB) reported in July that its Phase 2 trial (Ser-109) did not meet its primary endpoint. Ser-109 was studying the effectiveness of its lead drug candidate, Ecospor, on patients with gastrointestinal diseases – specifically patients with recurrent Clostridium Difficile infection (CDI). That news wiped out over 70% of shareholder equity.

Fast forward to Thursday when Seres Therapeutics Inc. (NASDAQ:MCRB) released financial results and a programmatical update.

Financials

Seres Therapeutics Inc. (NASDAQ:MCRB) reported a net loss of $91.6 million for the full year, as compared to a net loss of $54.8 million for the prior year. Seres reported a net loss of $25.3 million for the fourth quarter of 2016, as compared to a net loss of $19.6 million for the same period in 2015. The increase in fourth quarter net loss was driven primarily by continued growth in clinical and development expenses as well as increased headcount, and ongoing development of the company’s therapeutic platform.

Programmatical Update
  • Seres Therapeutics Inc. (NASDAQ:MCRB) has consulted with the FDA and has received approval to perform an additional Phase 2 clinical trial for SER-109 (Ecospor III) in approximately 320 patients with multiply recurrent Clostridium difficile infection (CDI).
  • Seres continued to advance the SER-287 Phase 1b clinical study in subjects with mild-to-moderate ulcerative colitis who have failed first line therapy.
  • Seres continued to advance the SER-262 Phase 1b clinical study in patients with primary C. difficile infection. SER-262, an Ecobiotic®, rationally-designed, fermented microbiome therapeutic candidate, is the first synthetically-derived and designed microbiome therapeutic candidate to reach clinical-stage development.
  • Seres continued to strengthen its intellectual property estate related to microbiome therapeutics. The United States Patent and Trademark Office issued a new patent (#9,585,921), assigned to Seres, covering compositions for treating multiple gastrointestinal diseases associated with dysbiosis of the microbiome.

Interested parties should be aware that Seres Therapeutics Inc. (NASDAQ:MCRB) has never reported any sales. Seres’ EPS has been negative each year since 2012 and had its worst year in 2015 when it reported an EPS loss of -$2.33. However of the six firms that cover MCRB, five rate the shares as a “Strong Buy” while one rates the shares as a “Hold”.

3/17/2017
Ticker Symbol MCRB
Last Price a/o 8:07 AM EST  $                    12.98
Average Volume                    223,400
Market Cap (mlns)  $                  515.64
Sales (mlns) $18.70
Shares Outstanding (mlns) 40.57
Share Float (mlns) 32.93
Shortable Yes
Optionable Yes
Inside Ownership 18.72%
Short Float 7.97%
Short Interest Ratio 11.74
Quarterly Return 37.85%
YTD Return 28.38%
Year Return -48.52%

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.

Arena Pharmaceuticlas, Inc. (NASDAQ:ARNA) Gets Financial Boost from Belviq

Arena Pharmaceuticlas, Inc. (NASDAQ:ARNA)

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) shares are up over 20% in pre-market trading. Trading volumes are heavy. ARNA has a listed average daily volume of just over 1.5 million shares but already in the pre-market over 1 million shares have traded hands and have hit a inter-day high of $1.70. The increased market action comes after the San Diego, CA-based company posted Q4 and full year earnings after the close yesterday.

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is a biopharmaceutical company that develops small molecule drugs. Currently Arena has three drugs in its pipeline:

  • Ralinepag – an oral IP receptor for the treatment of pulmonary arterial hypertension.
  • Etrasimod – an oral receptor modulator for the treatment of multiple auto-immune diseases.
  • APD371 – an oral receptor for the treatment of pain in people afflicted with Crohn’s disease.

Arena also has two collaboration efforts:

  • Axovant Sciences Ltd. – marketing and supply agreement for Nelotanserin, a drug for the treatment of people with either dementia or Lewy bodies. Phase 2 clinical trials expected in 2017.
  • Beohringer Ingelheim – research and licensing agreement to identify drug candidates suitable for continued research and development of drug candidates targeting psychiatric diseases.
2016 Financials and History

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) revenues were reported at $124 million. 21% ($26.3 million) of those revenues were from Belviq product sales and 58% ($72.1 million) were from Belviq upfront payments. Research and development expenses were $66.4 million. Net loss was $22.9 million or $0.09/share. Net income attributable to shareholders on a diluted basis comes in at -$0.16/share. Analysts were expecting revenues of $15.6 million and an EPS loss of -$0.08. Net product sale are being reported at $26.4 million.

In 2015, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) posted an EPS loss of -$0.45 which was a larger figure than the 2014 EPS loss of -$0.28. Sales for 2014 and 2015 were relatively flat. In 2014 sales were posted at $37 million followed the next year by a figure of $38.3 million.

Four firms follow Arena Pharmaceuticals, Inc. (NASDAQ:ARNA). Two analysts rate ARNA shares as a “Strong Buy” and the other two rate the shares as a “Hold”.

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.