Conatus Pharmaceuticals Inc. (Nasdaq: CNAT) Signs Deal with Novartis AG

Conatus Pharmaceuticals, Nasdaq: CNAT

Shares of Conatus Pharmaceuticals Inc. rocketed in after-hours trading. CNAT, traded on the Nasdaq, closed the regular session at $1.96, but rose to $5.90 (150%+) after Conatus Pharmaceuticals announced a licensing and collaboration agreement with Novartis AG for a liver disease treatment. Conatus said it will receive $50 million upfront from Novartis in addition to other payments for an exclusive option, collaboration, and licensing agreement for its liver disease drug Emricasan. Novartis will also pay 50% of development costs for the drug after the exercise of options.

Six Wall St. firms cover CNAT and all rate the shares as a “Strong Buy”. The consensus target price is $8 but that is certain to be reviewed by analysts after tonight’s announcement.

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.

Ticker Symbol CNAT
Last Price a/o 6:00 PM EST  $               4.10
Average Volume 497,500
Market Cap $53.5 million
Shares Outstanding 27.28 million
Share Float 25.28 million
Shortable Yes
Optionable Yes
Inside Ownership 0.10%
Short Float 2.70%
Short Interest Ratio 1.43
Quarterly Return -6.22%
YTD Return -31.94%
Year Return -34.45%


Author: Marcus Anderson

Marc Anderson is a pseudonym. Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

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