Pulmatrix Inc. (NASDAQ:PULM) Rallies On Narrower Q1 Net Loss & $33 Billion Market Opportunity

Pulmatrix Inc. (NASDAQ:PULM)

Days after reporting a quarterly loss of $3.5 million, shares of Pulmatrix Inc. (NASDAQ:PULM) have come to life on the company receiving a key U.S patent for its inhaled drug for chronic pulmonary disease. Fuelling a bullish momentum on the stock are reports that the company’ unique inhaled drug has the potential to become blockbuster according to chief financial officer Bill Duke.

$33 Billion Market Opportunity

The inhaled therapy under development according to the executive is based on Pulmatrix Inc. (NASDAQ:PULM)’s proprietary technology that has been found to be effective in delivering drugs to the lungs. Dubbed iSPERSE, the technology bypasses the limitations of current technologies that have been found to reduce efficacy as well as cause side effects.

Pulmatrix Inc. (NASDAQ:PULM) has solved some of the current problems by creating tiny particles that look like nooks and crannies – thus able to fly to the lungs with ease. The technology allows a drug to fly to the lungs without sticking to the throat.

According to the chief financial officer, Pulmatrix’s novel treatment for fungal pathogens suffering from severe lung disease has the potential to generate some value for the company.

“The global market for inhaled products is expected to grow to be $33 billion by 2019. So we believe that there is a significant opportunity to both serve patients and build a profitable company,” Duke said.

The executive has also confirmed they are developing an inhaled bronchodilator PUR0200 that will target chronic obstructive pulmonary disease. Pulmatrix has already received a patent in the United States for PUR0200, which chief executive officer Robert W. Clarke affirms the credibility of its iSPERSE technology for delivering drugs to the lungs.

Pulmatrix Inc. (NASDAQ:PULM) is also working on an inhaled antifungal drug designed to treat fungal infections in the lungs.

Q1 Financial Results

Separately, the clinical stage company recently reported its Q1 2017 financial results in which net loss narrowed to (-$3.5) million compared to (-$5.7) million as of last year. Research and development expenses halved to $1.7 million from $$3.4 million. The company has attributed the decrease to lower clinical development costs and external service costs.

Pulmatrix Inc. (NASDAQ:PULM) did not generate any revenues in the first quarter compared to $0.4 million as of last year same period. The Company’s cash and cash equivalents more than doubled to $10.5 million as of March 31, 2017, compared to $4.2 million as of December 31, 2016.

Shares of Pulmatrix Inc. (NASDAQ:PULM) were up by 18.38% in Wednesday trading session ending the day at highs of $2.77 a share.

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.

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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