AcelRx Pharmaceuticals Inc (NASDAQ:ACRX)

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) Stock Price Drops

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) Stock Price

Shares of AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) tumbled 12.82% in Tuesday’s trading session after the company reported second quarter financial results that did not meet Wall St. expectations. A net loss of (-$0.29) cents per share was lower than expectations of a loss of (-$0.28) cents per shares. ACRX stock price dropped even as the company reported a successful ZALVISO Phase 3 trial.

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX)
Two month daily candlebar graph for $ACRX Stock Price

ZALVISO Topline Results

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) is a specialty pharmaceutical company focused on the development of therapies for the treatment of moderate to severe acute pain. DSUVIA is the company’s lead product having been accepted for filing by the U.S. Food and Drug Administration (FDA) for the treatment of acute pain. Zalviso is the company’s lead candidate drug indicated for the management of acute pain.

Zalviso is marketed in Europe as part of a licensing agreement with Grunenthal. During the quarter, the drug generated top line results in Phase 3 study targeting 320 hospitalized, postoperative patients. Trial results indicate that 2.2 % of the patients experienced ZALVISO device error which is below 5% limit specified in study objectives.

“We expect to receive a decision from the FDA on our marketing application for DSUVIA in the fourth quarter and are on track to resubmit the NDA for ZALVISO to the FDA that same quarter. We also continue to manage our expenses and cash in line with our plan leading into these major company milestones,” said Vincent J Angotti.

Widening Net Loss

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) generated a net loss of (-$13.1) million in Q2 compared to a net loss of (-$11.1) million reported last year. Net loss from operations increased to (-$9.9) million from (-$8.3) million as of Q2 2016.

Net loss for the six months ending June 30, 2016, soared to ($28.6) million compared to (-$22.1) million as of the same period last year. AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) attributes the higher than expected net loss to decreased Department of Defense contract revenue for Zalviso, coupled by increased cost of goods.

Revenue from ZALVISO sales increased to $2.2 million from $1.3 million as of Q2 2016. Revenue for the first six months of the year totaled $5.2 million compared to $3.1 million for the six months ended June 30, 2016.

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) cash and cash equivalent as of June 30, 2017, stood at $62.1 million compared to $80.3 million as of December 31, 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 $ACRX and receive breaking news on other hot stocks by signing up for our free newsletter!

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.

Analyst Review Pushes AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) Higher

Daily Candle Bar Graph $ACRX July 18

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) impressive run continued in Monday’s trading session. Analysts at Jefferies initiating coverage of the stock with a share price target of $7 a share has apparently helped strengthen bullish sentiments on the stock. The stock was up by 31.25% to end the day at $3.15 a share.

AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX)
Daily Candle Bar Graph $ACRX July 18

Clinical Pipeline

Taking into considerations Friday’s and Monday’s rallies, the stock is now up over 21% YTD. The specialty pharmaceutical company specializes in the development and commercialization of therapies for the treatment of acute pain. The company’s lead product is DSUVIA – currently in a Phase III clinical trial as a novel treatment for moderate to severe acute pain.

Zalviso is the company’s other candidate drug for the management of moderate to severe acute pain for patients in a hospital setting. AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) has already completed a Phase 3 clinical trial enrollment and topline results are expected before the end of the year.

During the first quarter, AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) completed a multi-center, double blind placebo trial of DSUVIA. Compared to placebo, the drug successfully reduced pain in patients over the study’s 12-hour period. The drug was also well tolerated in patients with nausea and headache side effects being reported.

Jeffries Sentiments

Early last month the U.S. Food and Drug Administration (FDA) canceled a review of the DSUVIA because of the product’s profile. Analysts at Jefferies believe the drug will be approved in October in a move that observers believe should help push the stock higher.

According to analysts, FDA approval should set the ground running on a potential European approval in the first quarter of next year. The equity firm believes the drug has a 75% and 80% chance of gaining regulatory approval in the U.S. and Europe respectively

“ACRX is under-valued due to potent oral opioid Dsuvia’s promise in medically supervised acute pain markets (~92M patients) and we see high likelihood of U.S./EU approvals in Q4’17/H1’18. Risk/reward is favorable into H1’18 with floor of ~$1.25 (no approvals) vs. $12/share (upside scenario),” Jefferies analysts in a statement.

Separately, AcelRx Pharmaceuticals Inc. (NASDAQ:ACRX) reported a net loss of (-$15.6) million in the first quarter compared to a net loss of (-$11) million reported last year. Net loss from operations also soared to highs of (-$12.1) million compared to (-$8.5) million reported last year. Revenue under the collaboration agreement with Grunenthal totaled $3 million compared to $1.8 million as of last year.

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 $ACRX 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.

CytRx Corporation (NASDAQ:CYTR)

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) Reports A $15.6 million Net Loss

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX)

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) has reported a net loss of $15.6 million for 2017’s first quarter. This translated to a loss of $0.34 per share. This was higher than the loss the pharmaceutical company recorded last year of $11.0 million or a loss of approximately $0.24 per share.

Operational net loss was also higher in 2017 compared to 2016. In 2017’s first quarter the net loss from operations amounted to $12.1 million while in 2016 it was $8.5 million.

Collaboration agreement

AcelRx Pharmaceuticals Inc (NASDAQ:ACRX)’s revenue in 2017’s first reached a figure of $3 million. AcelRx also realized revenue of $0.1 million from a contract with the Department of Defense (DoD). A year earlier AcelRx had generated revenues of $1.8 million under the Grunenthal collaboration agreement and $1.2 million from a DoD contract.

Operating expenses and costs for 2017’s first quarter reached $4.1 million. This was higher than the operating expenses and costs for the same quarter in 2016 – they amounted to $3.6 million. These expenses were mainly attributed to the launching of Zalviso in the European Union.

Research and development

In 1Q 2017 AcelRx Pharmaceuticals Inc (NASDAQ:ACRX)’s expenses for research and development amounted to $6.9 million. A year ago for the same quarter R&D expenses were $4.2 million. The increase of $2.7 million resulted from a rise in the clinical study spending of the IAP312.

Administrative and general expenses for this year’s first quarter amounted to $4.1 million which was higher than the $3.8 million figure that was reported in 2016’s first quarter. The difference of $0.3 million was attributed to the market research activity expenses that were incurred for DSUVIA.

Other expenses rose to $3.5 million in the first quarter of this year to reach $3.5 million. This was $1 million higher than last year’s first quarter. The difference was attributed to changes in the company’s liabilities’ fair value as well as a rise in non-cash interest expenses.

Cash reserves

By the end of the first quarter of this year the pharmaceutical company had investments, cash equivalents and cash amounting to $72.3 million. This was lower than the figure of $80.3 million which is what the AcelRx had as of December 31, 2016. The difference was a result of the cash being used in operations of the company.

On Friday shares of AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) rose by 12.77% to close the day at $2.65.

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