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TMFBlacknGold (92.09)

BlacknGold Pharma Blogs - CRMD

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March 14, 2011 – Comments (6) | RELATED TICKERS: AEZS , GSK , PFE

     Today’s BlacknGold Pharma pick is CorMedix (CRMD), which unfortunately is not on CAPS. CorMedix focuses on treating kidney diseases such as acute kidney injury (AKI) and chronic kidney disease (CKD). It is a relatively unknown company that has been trading under the radar (an average daily volume that fluctuates between 10k-30k vs. 11.5 million shares out). It has two main drug candidates – Deferiprone and Neutrolin – with 5 major trials underway. The company’s market cap of $19.29 million compared to its current valuation of $50 million make it significantly undervalued. It has $9.5 million in cash, which is enough to carry it through 2012 at the current burn rates. It has $0 debt and has received multiple grants totaling $490K.      

     Its leading drug candidate, Deferiprone CRMD-001, is currently wrapping up two Phase II trials. Deferiprone is an iron binding agent that prevents/treats cardiorenal diseases, which are caused by a toxic build-up of iron that damages tissue. Iron, Fe on the periodic table, has several stable states. It can have a +2 charge or a +3 charge, which gives it a lot of power in oxidation/reduction reactions. A positively (+) charged molecule wants to gain electrons, while a negatively (-) charged molecule wants to dump electrons. Oxygen atoms have plenty of reactive potential because they can sustain a negative charge quite easily. Therefore, a surplus of iron in your blood will lead to an imbalance in oxidative reactions. Deferiprone binds/reacts with iron in the blood before it can react with receptors on tissues – thus preventing and treating AKI or CKD.     

     CorMedix is also developing a biomarker test for iron levels in urine. What is the significance of CorMedix’s pipeline? CRMD-001 could be the first FDA approved drug for Catheter Related Bloodstream Infection (CRBI), which affects 80,000 hemodialysis patients in the US. The company was granted an IND application with an approved Phase III SPA. Deferiprone and Neutrolin represent an estimated $675 million and $250 million, respectively, in annual revenue in the US. While CorMedix is focused on the US market, it is also waiting for the CE Mark for Deferiprone in Europe that is needed before marketing a drug, which is expected within 2011 or early 2012.     

     Deferiprone has been approved in 50 countries worldwide. CorMedix owns all worldwide rights to develop, market, and manufacture CRMD-001. 

Previous Pharma Blogs:Novabay Pharmaceuticals - NBY

On deck: AEZS

Coming soon: IMGN, OGXI, ATHX, KERX, SGEN, AVNR

6 Comments – Post Your Own

#1) On March 18, 2011 at 3:01 PM, mhy729 (30.22) wrote:

Thanks for the write-up!  I am looking further into this one.

+1 rec (of only 2...)  :(  Please don't get discouraged!  I look forward to your post on AEZS (maybe do a two-fer and include KERX?)

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#2) On March 21, 2011 at 7:37 PM, TMFBlacknGold (92.09) wrote:

Yeah I'm not sure if I should include KERX in AEZS or make it its own. And no one really follows NBY or CRMD, so I'm not worried. AEZS should get much more attention.

Thanks!

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#3) On April 01, 2011 at 6:49 PM, mhy729 (30.22) wrote:

Recent WSJ online article on Catheter Related Bloodstream Infection (CRBI)

The Secret to Fighting Infections
Dr. Peter Pronovost says it isn't that hard. If only hospitals would do it.

http://online.wsj.com/article/SB10001424052748704364004576131963185893084.html

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#4) On September 29, 2011 at 12:23 PM, mhy729 (30.22) wrote:

Still following CRMD?  They look to be running low on cash, from what I can tell based on their latest filings.  I don't think there's been any bad news to account for the share price decline, except for what seems to be its dwindling cash position.  Of course there's also the general bearish sentiment present in the market as of late.

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#5) On September 30, 2011 at 7:02 PM, mhy729 (30.22) wrote:

CorMedix Announces Strategic Changes

http://www.businesswire.com/news/home/20110930005957/en/CorMedix-Announces-Strategic

 

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#6) On September 30, 2011 at 7:05 PM, mhy729 (30.22) wrote:

It would seem that the market was anticipating either a dilutive financing, or such a reduction of operating expenses as CRMD has just announced as above.

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