Market Showing Confidence in Bellerophon Therapeutics Inc (NASDAQ:BLPH)

Bellerophon Therapeutics Inc (NASDAQ:BLPH)

Bellerophon Therapeutics Inc. (NASDAQ:BLPH) shares are up over 45% on heavy volumes. Pre-market activity was also heavy for the biotech firm. Over 129,000 BLPH shares traded hands as the stock gapped up to open pre-market trading at $1.13 after the $1.03 Friday close. Bellerophon has released no news that would typically act as a catalyst for such price action.

One week ago, on March 13, Bellerophon Therapeutics Inc. (NASDAQ:BLPH) released their Q4 and full-year 2016 financial results and provided a programmatical and business update. Q4 EPS was a loss of -$0.37 which was worse than analyst expectations of -$0.21. However, Bellerophon reduced its overall Q4 net loss to -$7.4 million from -$10.8 million in Q4 2015.

The reduction in their net loss was mirrored in their full-year results where the net loss was -$23.8 million, which was better than the 2015 net loss of -$46.5 million. Much of the savings came from Bellerophon Therapeutics Inc. (NASDAQ:BLPH) ability to reduce research and development expenses thanks to the completion of their INOpulse device development. The company was also able to close out expenses for the Phase 2 clinical trials of PAH.

Warren, NJ-based Bellerophon Therapeutics Inc. (NASDAQ:BLPH) is a biotechnology firm that specializes in the intersection of cardiopulmonary drugs and the devices used to deliver them. Their INOpulse product candidate is at the center of this strategy. INOpulse is a pharmaceutical-grade nitric oxide. Nitric oxide is a naturally occurring molecule produced in the lining of blood vessels that plays a large role in the opening of the arteries.

Using INOpulse, Bellerophon Therapeutics Inc. (NASDAQ:BLPH) is in Phase clinical trials with the following treatments:

  • PAH – addressing pulmonary arterial hypertension;
  • PH-COPD – addressing chronic obstructive pulmonary disease;
  • PH-IPF – addressing idiopathic pulmonary fibrosis.

In Q4, four leading healthcare funds and significant investments by current shareholders, including New Mountain Capital, LLC and Linde North America, as well as directors and management, completed an equity financing. Gross proceeds to Bellerophon Therapeutics Inc. (NASDAQ:BLPH) were $12 million.

The only analyst that covers Bellerophon Therapeutics Inc. (NASDAQ:BLPH) rates BLPH shares as a “Strong Buy”.

Ticker Symbol BLPH
Last Price a/o 10:08 AM EST  $                      1.46
Average Volume                1,600,000
Market Cap (mlns)  $                    33.00
Sales (mlns) $0.00
Shares Outstanding (mlns) 32.04
Share Float (mlns) 28.69
Shortable Yes
Optionable No
Inside Ownership 4.50%
Short Float 9.06%
Short Interest Ratio 1.63
Quarterly Return 103.96%
YTD Return 98.08%
Year Return -65.08%

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.

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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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