Conatus Pharmaceuticals Inc. (NASDAQ: CNAT) is a biotechnology company, focused on the development and commercialization of novel medicines for the treatment of liver diseases.
On September 17th, CNAT shares closed at $4.16 per share and had an average trading volume under 500K. The company shares have reached a high of $6.74 since then and recent traded volume has been in the millions of shares.
Conatus is in a collaboration agreement with Novartis for the development of its lead drug candidate emricasan (IDN-6556). The collaboration allows for cash payments to CNAT based on certain milestones and Novartis also contributes finances for the company’s clinical trial process.
CNAT will host an invitation-only symposium on portal hypertension for institutional investors and research analysts on Thursday, September 27, 2018, from 4:30 p.m. to 6:00 p.m. ET in New York.
The company will also participate At the Oppenheimer Fall Summit Focused on Specialty Pharma and Rare Disease (September 26-27 in New York), senior management will conduct a series of scheduled meetings with investment professionals.
Following the Oppenheimer Summit, the company will participate at the Roth Capital Partners Battle of the NASH Thrones Investor Conference (October 17 in New York), senior management will conduct a series of scheduled meetings with investment professionals and participate in a panel discussion on fibrotic, inflammatory and metabolic agents.
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Products
Conatus Pharmaceuticals’ medicine, emricasan (IDN-6556), is considered investigational, meaning that it is being evaluated in clinical trials and is not yet approved for use by regulatory authorities.
The company is conducting three Phase 2b clinical trials in collaboration with Novartis – the EmricasaN, a Caspase inhibitOR, for Evaluation (ENCORE) trials, designed to evaluate emricasan in patients with fibrosis or cirrhosis caused by nonalcoholic steatohepatitis (NASH):
ENCORE-PH (for Portal Hypertension), initiated in the fourth quarter of 2016, in approximately 240 patients with compensated or early decompensated NASH cirrhosis and severe portal hypertension, with top-line results expected in the fourth quarter of 2018 followed by an integrated treatment extension period for clinical outcomes;
ENCORE-NF (for NASH Fibrosis), initiated in the first quarter of 2016, in approximately 330 patients with NASH fibrosis, with top-line results expected in the first half of 2019; and
ENCORE-LF (for Liver Function), initiated in the second quarter of 2017, in approximately 210 patients with decompensated NASH cirrhosis, with top-line results expected in the second half of 2019.
About
Conatus Pharmaceuticals Inc., a biotechnology company, focuses on the development and commercialization of novel medicines for the treatment of liver diseases in the United States. Its product candidates include Emricasan, an orally active pan-caspase protease inhibitor that is in Phase IIb clinical trials for post-orthotopic liver transplant as a result of hepatitis C virus infection with sustained viral response; for patients with portal hypertension; for patients liver fibrosis caused by nonalcoholic steatohepatitis; and for liver function. The company was founded in 2005 and is headquartered in San Diego, California.
Analysts
5 Wall Street analysts have issued ratings and price targets for Conatus Pharmaceuticals in the last 12 months. Their average twelve-month price target is $12.4983, suggesting that the stock has a possible upside of 102.24%. The high price target for CNAT is $20.00 and the low-price target for CNAT is $4.30. There are currently 5 buy ratings for the stock, resulting in a consensus rating of “Buy.”
8/2/2018 Oppenheimer Set Price Target Buy $14.00
4/5/2018 SunTrust Banks Lower Price Target Buy $4.30
4/5/2018 HC Wainwright Lower Price Target Buy ➝ Buy $17.00 ➝ $15.00
2/8/2018 Roth Capital Initiated Coverage Buy ➝ Buy $20.00
1/24/2018 S&P Equity Research Boost Price Target $5.02 ➝ $5.69
Source: marketbeat.com
Financial review
The net loss for the second quarter of 2018 was $4.5 million compared with $5.4 million for the second quarter of 2017. The net loss for the first six months of 2018 was $9.5 million compared with $9.0 million for the first six months of 2017.
Total revenues were $8.8 million for the second quarter of 2018 compared with $10.0 million for the second quarter of 2017. Total revenues were $18.5 million for the first six months of 2018 compared with $17.0 million for the first six months of 2017.
Research and development expenses were $10.7 million for the second quarter of 2018 compared with $13.2 million for the second quarter of 2017. Research and development expenses were $22.8 million for the first six months of 2018 compared with $21.1 million for the first six months of 2017.
General and administrative expenses were $2.6 million for the second quarter of 2018 compared with $2.2 million for the second quarter of 2017. General and administrative expenses were $5.3 million for the first six months of 2018 compared with $5.0 million for the first six months of 2017.
Cash, cash equivalents and marketable securities were $57.7 million at June 30, 2018, compared with $74.9 million at December 31, 2017, and a projected year-end 2018 balance of between $35 million and $40 million.
Stock influences and risk factors
Any positive clinical data for its lead compound, emricasan, could be a catalyst for the company shares.
If Novartis terminates the Option, Collaboration and License Agreement, or the Collaboration Agreement, and they fail to obtain additional financing, they may be unable to complete the development and commercialization of emricasan.
The business is dependent on the success of a single product candidate, emricasan, which will require significant additional clinical testing before they can seek regulatory approval and potentially launch commercial sales.
Clinical drug development involves uncertain outcomes, and results of earlier studies and trials may not be predictive of future trial results.
Stock chart
On Monday, September 24, 2018, CNAT shares were trading at $6.23 on traded volume of 2.3 million shares. The current RSI (14) is 71.78
At $6.23, CNAT shares are trading above their 50 DMA and 200 DMA of $4.51 and $4.71 respectively.
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