Why Volumes Exploded for DelMar Pharmaceuticals Inc (NASDAQ:DMPI)

DelMar Pharmaceuticals Inc (NASDAQ:DMPI)

Shares of DelMar Pharmaceuticals Inc (NASDAQ:DMPI) are up over 80% after the biopharmaceutical company announced that the U.S. Patent and Trade Office (USPTO) issued a patent covering covering improved analytical methods for analyzing and determining impurities in dianhydrogalactitol (VAL-083). DMPI stock is trading around the $2.00 level after closing at $1.12 yesterday. DelMar Shares gapped up to open at $1,80 before hitting their inter-day high of $2.29. Volumes have been strong. DMPI shares have a 30-day, daily traded volume of under 150,000 but by noon today over 16.8 million shares have traded.

DelMar Pharmaceuticals Inc (NASDAQ:DMPI)
Two day DMPI stock price chart

Delmar Pharmceuticals Patents

The newly issued patent strengthens DelMar Pharmaceuticals Inc (NASDAQ:DMPI) their intellectual property portfolio surrounding their VAL-083 manufacturing process. VAL-083 is billed by DelMar as a first-in-class DNA targeting agent that has successfully demonstrated clinical activity against a range of tumor-types in prior clinical trials sponsored by the U. S. National Cancer Institute (NCI). VAL-083 is currently protected by eight U.S. patents and eight patents outside of the U.S.

DMPI Stock

Ironically, DelMar Pharmaceuticals Inc (NASDAQ:DMPI) was downgraded by Maxim Group just one month ago – from a “Buy” to a “Hold”. DMPI stock had just made a new 52-week low of $1.05 last week. However the news surrounding the patent issuance now places the stock almost 100% off their lows. Unfortunately, long-term holders of DelMar Pharmaceutical stock are still well off their 52-week high of $6.90.

The micro-cap biopharmaceutical firm has only produced a profit for shareholders once in the past five years – in 2014. Per share losses in the other years range from (-$0.46) in 2015 to (-$1.12) in 2013. On top of that, dilution is an ongoing concern for long-term holders of the stock. In 2012 there were 3.31 million shares outstanding. By 2016 that number was reported at 10.95 million.

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: 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.

Neos Therapeutics Inc. (NASDAQ:NEOS) Trades Lower after FDA Approval

Neos Therapeutics Inc. (NASDAQ:NEOS)

Neos Therapeutics Inc. (NASDAQ:NEOS) shares fell 3.45% a day after the U.S. Food and Drug Administration (FDA) approved its treatment for Attention Deficit Hyperactivity Disorder, Adzenys. The approval brings the number of the company’s ADHD products approved in the past three years to three.

NEOS Stock Performance

Tuesday’s sell-off threatened to bring to an end a bullish that began last month. The stock has struggled to close above the $9 a share mark on two attempts. However, it is still up by more than 20% for the year, compared to the industry average of 2.9%.

Neos Therapeutics Inc. (NASDAQ:NEOS)
One month NEOS stock price chart

It awaits to be seen if investors will continue to push the stock higher in the wake of the FDA milestone. The FDA approval unlocks yet another treatment option for people struggling with Attention Deficit Disorder in addition to strengthening the company’s ADHD portfolio.

“Neos Therapeutics Inc. (NASDAQ:NEOS) has now successfully gained FDA approval of three ADHD products in just two years. We are very proud of this accomplishment and believe it speaks to the strength of our technology platform. Our commitment to ADHD and addressing the individual needs of patients is clear, and we look forward to the commercial launch of this product in early 2018,” said Vipin K. Garg, Ph.D.

ADHD Treatment Push

Adzenys is a once-daily extended release liquid medication that does not require refrigeration to reconstitute at the pharmacy level. It utilizes the same principle as Adzenys XR-ODT that allows healthcare providers to transition patients from liquid to ODT formulations.

Just like Adzenys XR-ODT, the newly approved drug is designed to stimulate the central nervous system of patients six years and older. Neos Therapeutics Inc. (NASDAQ:NEOS) plans to launch the drug in the first half of the year. Adzenys XR-ODT generated sales of $7.3 million in the first half of the year representing a 35.5% year-over-year growth.

While ADHD is one of the largest and fastest growing business segments, it continues to attract a number of companies, gunning for market share with novel treatments. Johnson & Johnson (NYSE:JNJ) is pushing for market share with its Concerti treatments and so is Pfizer Inc. (NYSE:PFE) with PFE Quilivant.

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: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Staffing 360 Solutions Inc. (NASDAQ:STAF) Rallies 48%

Staffing 360 Solutions Inc. (NASDAQ:STAF)

Shares of Staffing 360 Solutions Inc. (NASDAQ:STAF) rallied 48.28% after the company announced a number of transformative developments including the refinancing of its balance sheet. News of two acquisitions also fuelled investor interest.

The stock gapped higher on the news and touched highs of $1.15 a share before it retreated to end Tuesday’s trading session at $0.86 a share. The rally helped reverse a downtrend that had pushed the stock to multi-year lows. It awaits to be seen if the close above the $0.80 mark is the catalyst that will help push the stock to test this year’s highs of $1.30 a share.

Staffing 360 Solutions Inc. (NASDAQ:STAF)
One month STAF stock price chart

Acquisitions

Staffing 360 Solutions Inc. (NASDAQ:STAF) has executed a comprehensive refinancing of a 12% senior note worth $40 million. The $40 million refinancing provides the company with a sufficient financial platform which it plans to use to drive further improvements.

The company has also renegotiated terms of its existing receivable facility of more than $25 million, which comes with lower refinancing cost and increased availability.

The acquisition of CBS Butler Holdings, a UK-based firm specializing in engineering and IT staffing services, is a milestone that underscores the company’s push for new growth opportunities. The group joins Staffing 360 Solutions Inc. (NASDAQ:STAF) with a wealth of management talent and client relationships.

Staffing 360 has also completed material acquisition of FirstPro Georgia, a U.S.-based company offering IT staffing and finance and accounting.

“We believe this refinancing of our balance sheet and simultaneous closing of two acquisitions will help us unlock significant value, especially as we leverage our projected positive operating cash flow from these transactions to drive additional organic and acquisitive growth,” said Brendan Flood, Executive Chairman.

According to the executive chairman, acquisition of the two companies and balance sheet refinancing should vault Staffing 360 Solutions Inc. (NASDAQ:STAF) to a $300 million a year business.

Staffing 360 Solutions Q2 Financials

Separately, Staffing 360 Solutions Inc. (NASDAQ:STAF) reported a 9.1% increase in second quarter revenues that totaled $42.1 million. Gross profit in the quarter remained flat, year-over-year, after coming in at $7.9 million. Net loss in the quarter more than halved to (-$0.6 million compared to $2.6 million generated in Q2 2016.

“During Q2 2017, we continued to improve the quality of our Balance Sheet. In addition to our improvements in efficiencies and Adjusted EBITDA, this has been a significant quarter from a capital raising perspective,” stated David Faiman, Chief Financial Officer.

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.

Mediwound Ltd (NASDAQ:MDWD) Slumps 17%

Mediwound Ltd (NASDAQ:MDWD)

Shares of Mediwound Ltd (NASDAQ:MDWD) fell 17.36% after the Israeli-based company announced an underwritten public offering of 4.4 million shares, priced at $5 a share. The company has also granted underwriters warrants for the purchase of additional 660,000 shares.

Mediwound Ltd (NASDAQ:MDWD)
One month MDWD stock price chart

MediWound’s Sell-Off

Tuesday’s slump added fuel to a sell-off wave that started in June. The stock has already shed more than 30% in market value as it continues to trade in a downtrend. It is currently trading in a $4.95- $5.30 trading range, levels last seen at the start of the year.

Investors pushing the stock lower does not come as a surprise as it underscores growing concerns that the public offering will burden the company with more debt. Stock dilution with the issuance of additional shares is another concern that continues to affect Mediwound Ltd (NASDAQ:MDWD)’s Sentiments on Wall Street.

Mediwound Ltd (NASDAQ:MDWD)’s expects gross proceeds of $22 million from the underwritten public offering, before the deduction of underwriting discounts, commissions, and other expenses. The offerings should close on or about September 21, 2017.

Mediwound Q2 Financial Results

The biopharmaceutical company reported a second quarter net loss of (-$4.5) million, an improvement from a net loss of (-$7.5) million reported last year. The company attributes the improved performance to a decrease of $3 million in operating expenses.

Revenue in the quarter was up by 93% to $0.69 million compared to $0.36 million reported in Q2 2016. Gross profit in the quarter stood at $0.2 million compared to a gross loss of (-$0.2) million in Q2 2016. Mediwound Ltd (NASDAQ:MDWD) exited the first half of the year with cash and short term deposits of $20.9 million and a working capital of $20.9 million.

NexoBrid $132 Million Funding

During the quarter the U.S Biomedical Advanced Research and Development Authority reiterated its commitment to continue funding research and development of Mediwound Ltd (NASDAQ:MDWD) NexoBrid indications. NexoBrid is MediWound’s proprietary pharmaceutical product for the removal of deep-partial and full-thickness thermal burns.

“In our second quarter, we continued to make progress in our commercial and clinical programs for NexoBird and EscharEx. We are thrilled with BARDA’s increased commitment to NexoBrid. This non-dilutive funding, totaling up to $132 million, provides significant support for our clinical development and manufacturing programs for several years,” said CEO Gal Cohen.

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: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Synchronoss Technologies, Inc. (NASDAQ:SNCR) Plunges 41%

Synchronoss Technologies, Inc. (NASDAQ:SNCR)

Synchronoss Technologies, Inc. (NASDAQ:SNCR) shares slumped 41% after Siris Capital Group said it was no longer interested in acquiring the company. The announcement fuelled a sell-off of the stock as investors questioned the company’s long-term prospects after failing to report quarterly earnings since the start of the year.

Synchronoss Technologies, Inc. (NASDAQ:SNCR)
One month SNCR stock price chart

Synchronoss Stock Performance

Tuesday’s sell-off pushed the stock near its all-time lows even as Synchronoss Technologies, Inc. (NASDAQ:SNCR) reiterated it was exploring a number of strategic options. The stock is already down by more than 60% for the year as it continued to trade in a strong downtrend close to its 52-week low of $9.76 a share.

A move by Siri to withdraw from the negotiations raised questions about Synchronoss Technologies, Inc. (NASDAQ:SNCR), given that it is the largest shareholder with a 13% stake. In a bid to prevent a further slump of the stock, the company says it is in active discussions with other parties as it continues to explore a wide range of strategic options

“The Synchronoss Board is committed to enhancing value for all shareholders and continues to explore a full range of strategic, operational and financial alternatives, which may include a sale of the Company or other transactions,” The company in a statement.

The statement did little to lift investor’s sentiments on the stock as the company continues to face a number of uncertainties. In addition to failing to post quarterly financial results, mass exodus of high-ranking executives is another headwind that continues to elicit investor concerns.

Early this year, the leader of mobile cloud innovation for mobile carriers, enterprises, and retailers announced that its CEO and CFO were stepping down after just a few months into the job.

Late last year Synchronoss Technologies, Inc. (NASDAQ:SNCR) announced the acquisition of IntraLinks holdings for $821 million. The company, later on, announced plans to divest a portion of the business to Sequential Technology International in a deal believed to have fetched as much as $146 million. It is still unclear how the remaining business has performed as the company is yet to issue a corporate and financial update.

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: 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 Mirati Therapeutics, Inc. (NASDAQ:MRTX) Topping?

Mirati Therapeutics, Inc. (NASDAQ:MRTX)

Traders are active in Mirati Therapeutics, Inc. (NASDAQ:MRTX) and are sending the shares up over 2.0% on heavy volume as of 10:30 AM EST. Last Friday MRTX stock essentially doubled after the biotech company released a statement announcing positive Phase 2 trial data on its two non-small cell lung cancer treatment trials using sitravatinib in combination with nivolumab (OPDIVO®).

The volatility of MRTX shares is showing up clearly in their option pricing as MRTX options are reportedly now being offered at some of the highest intrinsic values of any stock trading. Clearly the street believes that Mirati Therapeutics, Inc. (NASDAQ:MRTX) future may have a significant upside potential.

MRTX Share Action

MRTX shares gapped up to open today’s session but traders sold off the gains. Volume has been very heavy. The 30-day, daily average volume for MRTX is just over 1 million shares but only one hour into trading over 3.25 million shares have traded. If that pace continues throughout the session, MRTX shares will trade over 17 times their average volume.

Mirati Therapeutics, Inc. (NASDAQ:MRTX) has not traded above the $10 level since mid-2016 so resistance and support at current levels ($11.20) are dynamic and subject to shifting tides. However it is hard to deny that the stock is in rare air as the Relative Strength Index (RSI) hovers above 85. Typically, traders believe that a stock with an RSI above 70 is reaching “overbought” territory.

Mirati Therapeutics, Inc. (NASDAQ:MRTX)
One month MRTX stock price chart

Analyst Reaction to MRTX

Prior to the release of positive Phase 2 trial data, analysts had assigned a consensus price target of $10.80 to MRTX shares. Of the seven firms that followed Mirati Therapeutics, Inc. (NASDAQ:MRTX), four gave the stock a rating of “Strong Buy” while three gave MRTX shares a “Hold” rating. The analysts believe that MRTX earning’s growth will be about four times the average for a company in the biotech sector. However, Mirati Therapeutics, Inc. (NASDAQ:MRTX) has yet to post a profit. As a matter of fact, last year was the largest per share loss shareholders experienced over the last three years.

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: 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.

Pluristem Therapeutics Inc. (NASDAQ:PSTI) Granted Fast Track Designation

Pluristem Therapeutics Inc. (NASDAQ:PSTI)

Pluristem Therapeutics Inc. (NASDAQ:PSTI) shares jumped 5.97% after the U.S. Food and Drug Administration granted it Fast Track Designation for its novel treatment for Critical Limb Ischemia(CLI) PLX-PAD. The designation increases the chances of the company enjoying an expedited review process.

Pluristem Therapeutics Inc. (NASDAQ:PSTI)
One month PSTI stock price chart

Investors Reactions

News of the FDA designation had initially pushed the stock to highs of $1.60 a share before it dropped to end the day at $1.42 a share. The rally helped affirm a bullish run that began early in the month after the stock fell to $1.10 a share. The stock faces immediate resistance at the $1.45.

PLX-PAD Prospects

Investor sentiments on Pluristem Therapeutics Inc. (NASDAQ:PSTI) are entirely based on the PLX-PAD treatment which is currently undergoing Phase 3 CLI study in the US and Europe. The European Medicine Agency has already included the candidate drug on its Adaptive Pathway Program, a further testament to its growing credibility as a novel treatment for CLI.

Japan’s Pharmaceuticals and Medical Devices Agency has also accorded PLX-PAD accelerated regulatory pathway. The agency has designed a single study that if successful will lead to early conditional marketing approval and reimbursement.

“Regulators in some of the largest healthcare markets in the world are now in alignment regarding the need for accelerated approval pathways for our cell therapy product in the treatment of CLI. Programs like the Fast Track Designation offer real hope for patients battling this disease,” said CEO Yaky Yanay.

PLX-PAD is seen as an alternative treatment that will help solve the needs of up to 40% of CLI patients who are at a high risk of amputation within the first year of diagnosis. PLX-PAD is thus seen as a valuable asset for Pluristem given that the disease costs the US $25 billion in healthcare costs annually

Financial Update

Separately, Pluristem has provided an update for its fourth quarter and fiscal 2017 for the period ended June 30, 2017. The company says it made significant advancement on its clinical development pipeline in addition to receiving $19 million in non-dilutive funding during the period

Pluristem Therapeutics Inc. (NASDAQ:PSTI) exited the FY2017 with cash and cash equivalents of $26.7 million after having conducted a public offering that raised $15.7 million in net proceeds.

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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