While I normally refrain from posting on penny stocks, there's a note out from Rodman & Renshaw that caught my eye. They are commenting on Catalyst Pharmaceuticals Partners, Inc. (NASDAQ:CPRX) after the co announced plans to conduct another study of vigabatrin in cocaine addiction, based on further analysis of the prior failed study.
Rodman notes that as a reminder, in May 2009 the company announced the results from a Phase 2 study of vigabatrin in cocaine addicts. Although on first pass the benefit of vigabatrin did not reach statistical significance vs. placebo across all enrolled patients, upon further analysis the company noted that compliance confirmed via urine tests was substantially lower than reported by patients. Further examination of the patients that actually took the drug revealed a correlation between compliance and efficacy, and the company is planning on leveraging this finding in designing a new trial of vigabatrin in cocaine addicts. It is worthwhile to highlight that a study of vigabatrin in cocaine addicts conducted in a single center in Mexico did show a statistically-significant benefit of vigabatrin. The key difference between the US and Mexican study is that the Mexican patients were treated at a rehabilitation facility, and their drug compliance was monitored periodically. On the flip-side, the US study was conducted across 11 centers, patient compliance was not monitored after the first dose, and patients were not treated in a rehabilitation setting. Catalyst plans to design and conduct a study of vigabatrin in a rehabilitation setting in addicts who are self-motivated to quit. This segment of patients may have a higher compliance, which may help highlight the benefit of vigabatrin.
Management estimates that another study of vigabatrin in cocaine addiction could cost ~$3MM, and the company has several options for financing this study, notably: partnerships, grants, and/or equity financing. Rodman notes they are cautiously optimistic that a study investigating vigabatrin in patients that receive the proper rehabilitation counseling and maintain a high rate of treatment compliance may be able to show the clinical benefit of vigabatrin, and they await a financing update prior to revisiting their timeline and commercial forecasts.
Notablecalls: So why did I find this one interesting?
- You have a ultra small-cap name (market cap $13 million) with a potential cure for cocaine addiction.
- The drug vigabatrin showed statistically significant results in a closed Mexican rehab center.
- Now the company is going to conduct a similar study in the US. This time patient compliance will be monitored after the first dose. This makes the study more likely a success.
I have really no idea how big the Cocaine addiction market potential is but it must be pretty huge. And CPRX just may have a drug that actually works.
Not making a call here but CPRX looks interesting here. Stock is up 22% with in pre market trading (light volume)
Rodman notes that as a reminder, in May 2009 the company announced the results from a Phase 2 study of vigabatrin in cocaine addicts. Although on first pass the benefit of vigabatrin did not reach statistical significance vs. placebo across all enrolled patients, upon further analysis the company noted that compliance confirmed via urine tests was substantially lower than reported by patients. Further examination of the patients that actually took the drug revealed a correlation between compliance and efficacy, and the company is planning on leveraging this finding in designing a new trial of vigabatrin in cocaine addicts. It is worthwhile to highlight that a study of vigabatrin in cocaine addicts conducted in a single center in Mexico did show a statistically-significant benefit of vigabatrin. The key difference between the US and Mexican study is that the Mexican patients were treated at a rehabilitation facility, and their drug compliance was monitored periodically. On the flip-side, the US study was conducted across 11 centers, patient compliance was not monitored after the first dose, and patients were not treated in a rehabilitation setting. Catalyst plans to design and conduct a study of vigabatrin in a rehabilitation setting in addicts who are self-motivated to quit. This segment of patients may have a higher compliance, which may help highlight the benefit of vigabatrin.
Management estimates that another study of vigabatrin in cocaine addiction could cost ~$3MM, and the company has several options for financing this study, notably: partnerships, grants, and/or equity financing. Rodman notes they are cautiously optimistic that a study investigating vigabatrin in patients that receive the proper rehabilitation counseling and maintain a high rate of treatment compliance may be able to show the clinical benefit of vigabatrin, and they await a financing update prior to revisiting their timeline and commercial forecasts.
Notablecalls: So why did I find this one interesting?
- You have a ultra small-cap name (market cap $13 million) with a potential cure for cocaine addiction.
- The drug vigabatrin showed statistically significant results in a closed Mexican rehab center.
- Now the company is going to conduct a similar study in the US. This time patient compliance will be monitored after the first dose. This makes the study more likely a success.
I have really no idea how big the Cocaine addiction market potential is but it must be pretty huge. And CPRX just may have a drug that actually works.
Not making a call here but CPRX looks interesting here. Stock is up 22% with in pre market trading (light volume)
3 comments:
100 premkt WL upgrade, ipo, guidance, most up% winner: CPRT, also XRTX RAME CHTP STZ UFS. ipo: TLCR AONE. Mkt winner BIOF. shorts galore
Rodman & Renshaw is just a glorified penny stock promoter (pump and dump)...and cocaine addicts don't want a cure. Sure, this stock will pop on hype and news, but it's not a real investment.
It's not an investment...it's a news trade.
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