GeoInvesting Weekly Premium Email and Call To Action Updates (May 11 – May 15)
Last week was a busy week for microcap companies scurrying to meet the deadline to report their Q1 2020 earnings by the March 15 deadline. Since a bunch of stocks in our coverage universe reported earnings, I thought it would be a good idea to create a video (coming soon) going over some of them, as well those that reported earnings in earlier weeks.
Please continue reading below for the past week’s coverage at GeoInvesting. Thanks for reading!
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Tracking Biotech Catalysts
Avadel posts strong clinical results in narcolepsy
Avadel Pharmaceuticals’ (NASDAQ:AVDL) recently announced positive phase III trial results for its drug FT218 to treat excessive daytime sleepiness and cataplexy in patients suffering from narcolepsy.
SanaCurrents forecast in September 2019 that Avadel’s pivotal phase III trial, called REST-ON, would succeed this spring. At the time of the report, Avadel traded at $4.34 per share. Following the release of the results, Avadel touched a high of $13.49 per share, a 3x return in seven months.
FT218, a once-nightly formulation of sodium oxybate, demonstrated meaningful improvement across three co-primary endpoints when compared to a placebo group. Common adverse reactions to sodium oxybate were observed at low rates in the REST-ON trial. FT218 is now on a path for FDA approval, potentially providing more alert daytime functioning for people who suffer from narcolepsy.
Shortly after the phase III results Avadel conducted a $125 million dilutive financing, a frequent strategy among small cap biopharma companies. The Avadel financing fits with SanaCurrents’ strategy to capture the stock appreciation, and value creation, from successful outcomes of biopharma clinical trial results and defined regulatory endpoints. Once the result is achieved, such as Avadel’s phase III trial, the company’s value can fall quickly, at least in the short term.
Avadel shares closed Friday at $8.08 per share.
SanaCurrents is a premium newsletter that has been offering its Premium service to GeoInvesting Members at a special rate. SanaCurrents assigns likelihoods of favorable FDA decisions or data releases (catalysts) surrounding biotech product development initiatives. Biotech expert Bill Langbein, along with his partner Philip Greyling, apply a host of qualitative and quantitative factors to support their rankings and their purchase of shares before dates of when FDA decisions or the release of important data. To date, SanaCurrents has written 65 reports, now archived at geoinvesting.com. You can go here to learn more about Sanacurrents and get access to the service for $7.99 for the first month.