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Opinions Alex Ruus
Acasti PharmaACST.VCOMMENTDec 10, 2014
Alex RuusStock price when the opinion was issued
As of Feb 16, 2023. Market Open.
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The krill oil lipid trial did not work as expected. The overall portfolio is quite attractive. Over the coming year, there may be opportunities. However, there are other opportunities in other companies like ATE, which he owns.
Robert McWhirterRobert McWhirterRobert McWhirter
Robert McWhirterPretty disappointing after last fall's announcement to have an Asian pharma company come in and get the rights to CaPre, their phase-3 development drug to treat cholesterol. It looked promising, but ACST hold off on the deal after a few new parties showed interest in CaPre. The market is disappointed the deal didn't happen and punished this stock. He believes this company could be worth $1 billion in two three years. The promise is still there, but you have to wait. Watch the phase 3 drug trials into next year.
Alex RuusA company with no revenue now. Drug developer. They are into phase 3 trials. A $33 million market cap company with half that in cash in their balance sheet. Probably going to be taken out by a large pharma once the drug is approved. (Analysts’ price target is $5.21)
Alex RuusGot beaten up recently, because they just did a financing. (He has 3% of the financing.) A compelling opportunity and a great entry point. They are going to be initiating phase 3 trials this month. Just raised some money and have enough to do the trial now. In negotiations with a big Chinese Pharma in terms of licensing Asian rights. Has been presented with an opportunity for about $125 million deal with the Chinese, which they are still negotiating. They have the cash on the balance sheet, so there are no near-term financial pressures.
Alex RuusA spin-out out of Neptune (NEPT-T), which still owns 35% of the company. There are positive developments going on and they are getting very close to going forward with phase 3. Discussions have been going on with the FDA. It’s fallen off the radar screen and there isn’t much in terms of analysts’ coverage. Expects there will be news this fall and winter which should really catalyze the stock. A good time to accumulate the stock.
Thinks there will be an event next year that will get the stock up above $1. Has been a poor performer this year. At the end of September, they came out with phase II trial results on their big Capri drug. Trial results were good. The current drug is a multimillion dollar drug that reduces triglyceride by 20%. This company’s drug, with half the dosage, came out with a 40% reduction. Because there were a bunch of short term players that when the stock didn’t pop a lot immediately, they decided to bail which has put on some selling pressure. For a company with a $30 million Enterprise Value, you are investing in something that would probably be in the half billion dollar range in the US. There is huge upside in the stock. New management is coming in, and once the phase 3 trial comes in, you are likely to see the stock really accelerate upwards.