Galmed Pharmaceuticals (NASDAQ:GLMD)

CAPS Rating: No stars


Player Avatar TSIF (99.96) Submitted: 3/29/2014 6:14:36 PM : Outperform Start Price: $11.16 GLMD Score: -34.81

Galmed Pharmaceuticals is a broken IPO, getting further traumatized by the broad selloff in biopharms.

I 'like" to watch broken IPO's. I find that once they are considered more rightly "priced" by the markets that they are generally pretty stable. Everyone who has bought until they bottom, including the institutional investors, (other than perhaps a few short term day traders), is generally underwater. They could get made and run, or prudent and run, or many, especially institutional investors, have too many shares to dump, so will sit, (at least for awhile).

Opened at $17 two weeks ago, and trending down hard since. (Initial price to investors was $13.50, so it did open high).
Based in Isreal (I tend to watch these as much as possible, due to possible regional unrest).
Low FLOAT (3.2M shares).
Proceeds of about $44M (showing 5 employees, and again early stages, so this could last awhile).

Chasing a broad range of indications, in very highly visible areas, but VERY early in the process. Similar approach as Intercept (ICPT) that had a 10X plus share price rise this month on Phase II data of sufficient success to stop the trial early.

Just starting a Phase 2B trial (second half 2014), for NASH patients also suffering from obesity and insulin resistance. Mid-stage data that drove ICPT is not due until the second half of 2016, so two years.....

MOST biopharms drift down over their first year, unless they come to market already partly mature. There are few announcements, data, analysts to focus attention. I suspect this will have more to fall, but may stabilize and actually pop a little if other mutual funds, or index funds decide to give it a go after their brethren investors have been burnt. Getting in early in a biopharm is generally not the best way, unless you have some conviction and plan to average in over time.....

researches and develops proprietary drugs for the treatment of lipid metabolism related diseases. The company has developed a series of proprietary fatty acid bile-acid conjugates (FABACs) which selectively inhibit the enzyme Stearoyl-CoA Desaturase (SCD1), a key regulator in lipid metabolism. It's flagship clinical compound Aramchol (arachidyl amido cholanoic acid), has the potential to modify several of the key disorders related to lipid metabolism, including fatty liver, gallstones, diabetes, hyperlipidemia, cancer, and alzheimer?s disease.

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