Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: Smufty2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 892  
Subject: CorMedix Date: 6/4/2010 4:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
CorMedix just went public. I looked at this one awhile ago, but have not yet taken a position. Below is an analyst review by the Maxim Group. Of note, notice the current market cap of 30MM versus an estimated peak sales for both products of 850MM.

Smufty

Initiation Buy
CorMedix Inc.
(CRMD – AMEX – $2.60)

Mid- and late-clinical-stage pipeline with encouraging data, unmet medical need, and substantial market potential; Initiating coverage with a Buy rating and $5 price target

We are initiating coverage of CorMedix Inc. (CRMD) with a Buy rating and 12-month price target of $5.00. CorMedix Inc. is a biopharmaceutical company with two leading developing products. The first, Neutrolin, is scheduled to commence a pivotal trial for its potential as a catheter lock solution for the prevention of central venous catheter infection in hemodialysis settings. The second, Deferiprone, should soon enter a Phase II study for the prevention of contrast-induced nephropathy (CIN) in high-risk patients. Given its insufficient exposure to investors, we believe the stock’s current valuation is not inline with its potential upside. As such, we are recommending CRMD with a Buy rating and 12-month price target of $5.00 for risk-tolerant investors.

Investment Thesis:

Ø Promising early clinical results bode well for an upcoming pivotal study evaluating Neutrolin in CRBI prevention. Several earlier clinical studies exhibited antimicrobial activities vs. the current standard of care, and the addition of heparin boosted the anticoagulation activities of Neutrolin, which both bode well for the success of the upcoming Neutrolin Phase III study for catheter-related bloodstream infection (CRBI) prevention, in our opinion. We anticipate a pivotal Phase III trial to start in 1H11.
Ø If positive, results from near-term Deferiprone Phase II study in CIN could be an important catalyst. With Deferiprone’s established iron-chelating capability and logical rationale that excess labile iron is a major pathological cause of contrast-induced nephropathy (CIN), we believe a potential positive outcome from the upcoming Phase II biomarker study could clinically validate and substantially increase this asset’s value. The Phase II proof of concept trial in CIN is scheduled to commence in 2Q10, with interim data by YE10 and complete results in 1H11.
Ø Market potential for Neutrolin and Deferiprone is substantial. Currently, there are not any approved drugs for the two indications that Neutrolin and Deferiprone address. We estimate the U.S. peak market sales for CRBI prevention in hemodialysis and CIN could reach $250MM and $600MM, respectively. As a potential first entrant into the market, the stock could realize substantial gains if the products receive approval.
Ø An undervalued stock. We believe CRMD shares are undervalued based on our comparable analysis of Phase II or III biopharmaceutical peers. We believe our 12-month target price of $5.00 per share would bring the total CorMedix value to $57MM – much more inline with its peer group’s average technology value of $50MM.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement