Cerecor Inc (NASDAQ:CERC) Threatening New Highs

Cerecor Inc (NASDAQ:CERC)

The uptrend, that began in August, continues for Cerecor Inc (NASDAQ:CERC) stock as it looks to close at its second highest level in a year on heavy volume. The market sent shares higher after the biotechnology company released Q3 earnings this morning.

Cerecor Inc (NASDAQ:CERC)
Cerecor Inc (NASDAQ:CERC) is a biopharmaceutical company that develops drug candidates to address the needs of patients with neurologic and psychiatric disorders. Cerecor’s lead drug candidate is CERC-301, which Cerecor currently intends to explore as a treatment for orphan neurological indications. Cerecor is also developing two pre-clinical stage compounds, CERC-611 and CERC-406.

Cerecor Earnings

Cerecor, headquartered in Baltimore, MD, reported Q3 net income of $18.7 million, or $0.52 per common share, compared to a net loss of (-$6.2) million, or (-$0.70) loss per common share, for the third quarter 2016. The company reported $0.52 income per diluted common share, compared to (-$0.70) loss per diluted common share for the same period last year. Cerecor posted $25 million in license and other revenue from the sale of CERC-501 to Janssen this past August.
Q3 2017 general and administrative expenses increased to $2.2 million, compared to $1.7 million for Q3 2016. This increase was driven primarily by expenses associated with the August sale of CERC-501. As of September 30, 2017, cash and cash equivalents were $24.0 million, escrowed cash receivable was $3.75 million and current liabilities were $4.8 million.

CERC Stock Performance

Cerecor Inc (NASDAQ:CERC) shares began an uptrend after the $25 million sale of CERC-501 to Janssen Pharmaceuticals. Over the past quarter, CERC stock is up over 88%. However CERC shares were trading over $5 at the end of last year, and the drop from those levels is seen in the (-70%) performance over the past year.
Annual earnings have been disappointing for shareholders. In 2014 there was an EPS loss of (-$0.41), followed in 2015 by (-$1.22) loss, and a loss of (-$1.87) for 2016.

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 $CERC and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Cerecor Inc (NASDAQ:CERC)

Cerecor Inc (NASDAQ:CERC) Announces Three Big News Items

Cerecor Inc (NASDAQ:CERC)

Cerecor Inc (NASDAQ:CERC) shares are the subject of several different news stories and are marginally up at noon EST. Over 1.5 million shares have traded hands which is much higher than their 30-day, daily average of 823,000. Today the biotech company announced Q2 financials, a $25 million rights sale to its CERC-501 treatment, and the retirement of its CEO.

Cerecor Inc (NASDAQ:CERC)
One month stock price chart for CERC.

Cerecor Financials

Cerecor Inc (NASDAQ:CERC) reported a Q2 2017 net loss of (-$1.8) million, or (-$0.14) per share compared to a net loss of (-$3.5) million, or (-$0.41) per share, for the same period in 2016. Q2 2017 Research and development expenses decreased to $0.5 million, compared to $2.5 million for Q2 2016. This decrease was driven primarily by the completion of Cerecor’s Phase 2 clinical trials for CERC-301 and CERC-501 in late 2016. General and administrative expenses for Q2 2017 decreased to $1.4 million, versus $1.6 million for Q2 of 2016. This decrease was driven primarily by a reduction in overall operations due to Cerecor’s limited cash position. As of June 30, 2017, cash and cash equivalents were $5.5 million and current liabilities were $1.7 million.

Today Cerecor Inc (NASDAQ:CERC) also announced that it sold all of its rights to CERC-501 to Janssen Pharmaceuticals, Inc. for $25 million. $3.75 million of that sum was deposited into a 12-month escrow account to secure future indemnification obligations to Janssen, as well as a possible $20 million regulatory milestone payment.

CERC-501 is an oral kappa opioid receptor antagonist that Cerecor developed as an adjunctive treatment of major depressive disorder (“MDD”) and for substance use disorders. CERC-501 has been observed to have activity in animal models of depression, substance withdrawal and dependence, and has been generally well-tolerated in five human clinical trials.

Cerecor CEO News

Lastly, today Cerecor Inc (NASDAQ:CERC) announced the retirement of Dr. Uli Hacksell, Cerecor’s President and CEO, effective Monday, August 14, 2017. John Kaiser, Chief Business Officer, has been appointed Interim CEO. Cerecor’s Board of Directors has initiated a search for a permanent Chief Executive Officer. Dr. Hacksell will stay on as Chairman of Cerecor’s Board.

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 $CERC and receive breaking news on other hot stocks by signing up for our free newsletter!

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.