Cardiome Pharma Corp. (USA) (CRME)

dividendsrg8t85 (51.10) Submitted: 1/08/08 3:56 PM : Start Price: $8.50 CRME Score: 4.13

Vernakalant (IV) is almost a lock for FDA approval. It is the first drug of its type to hit the market in eight years.





The death in the study had NOTHING to do with the drug and if people, including analysts, would read the entire report instead of the front page they would see that the FDA report and the advisory panel were very optimistic about the drug, they were, however, dissappointed that the drug was not tested on stroke patients, but once the drug is approved it will be used for off label use just like many other drugs on the market.





The real value of this company lies with the oral version of vernakalant. If the company reports positive phase 2B results we should see a large spike in the share price because of the potential market for the oral, estimated at 3 billion dollars.





If you want to see what the potential for an oral drug in a market where there is currently none, look at RIGL. It shot from $8 to $31 just on positive phase 2 results and they don't even have the financial position to take the drug to market much less continue research without raising more capital. Cardiome is in a much better financial position with royalties coming after the IV gets approved and around 90 million in cash.





Cardiome will have a variety of options it can pursue if the phase 2B results are good they include taking a partner, being acquired, and taking the drug to market themselves, all of which should be beneficial to shareholders in varying degrees.





This is a good stock play for speculative money. I recently purchased more at $8.60 in anticipation of good news in march.

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