Opinions
Alex Ruus
Acasti Pharma
ACST-X
BUY
Sep 05, 2018
$0.720
Stock price when the opinion was issued
Consumer Products
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STRONG BUY
It's finally breaking out after going nowhere for a while. They're doing phase 3 trials now on their drug and should complete the results by December. That's why investors are pushing this stock up. He expects good results and be accretive. A $200 million company worth north of $1 billion. Caveat: biotech stocks are volatile.
Consumer Products
BUY
They use the lipid from krill oil to strengthen action of another drug. Early indications seem very promising. The results should be out soon. One batch before the end of the year, and another in the new year. If the trial is successful, we could see a significant increase in the price.
Consumer Products
RISKY
They're working on a phase two test of a new drug, but the results are delayed, which has hammered the stock by half, though it's moved up 16% today. Results should be released in mid/late-January and he expects them to be positive. The drug will address a huge population who suffers high cholesterol. He sees a $10 target price, if the result is good and all goes well. Very speculative.
Consumer Products
SELL
It highlights the pharma industry. In Canada there are a lot of tax credits that are applicable to Canadian Pharma companies. You can't say this is predictable. They went through the trials and it did not work. Phase three is for that. They still have some cash and some science. Stocks in this position usually flat lines for a while. He feels it is better to come out and get back in later.
Consumer Products
WAIT
COMMENT
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.
Consumer Products
Advertising
Pretty 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.