Potential near-term catalysts: - breakthrough therapy designation in RSE - end-of-PhII meetings for PPD and RSE - partnership or acquisition
Thesis summary: Drug showed 100% seizure control at 24h in PhII trial in patients with drug-resistant, life-threatening seizures (RSE) Intravenous formulation of the drug showed strong anti-depressant activity but oral disappointed in a PhII trial. Oral setback likely a matter of patient compliance. Stock sold off with investors overlooking value of IV in severely depressed patients (think IV ketamine) and RSE. 2 PhIII trials ongoing in orphan pediatric conditions. Filed new patents in 2018 that should boost IP protection for the drug until 2038. Company chose not to raise cash following ++ RSE data release, suggesting ongoing partnership/acquisition talks.
Key stats: - debt-free - cash through Q3 2020 - similar drug to SAGE at 1/100 the valuation