Pain Therapeutics, Inc. (PTIE)

pipeline and cash

A virtual pharma development company with several shots on goal. Remoxy already partnered with King Pharma. Abuse resistant forms of oxycontin should be a big hit. Great royalty rates. Another pic, Durect provides the drug delivery system for one of their pipeline products. PTIE holds tons of cash too - not going away. Very lean company, they outsource almost everything.

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Timestamp: 2009-09-08 19:37:25 UTC

Top 30 Magic Formula stock that is rated 5 stars in CAPS. High probability to outperform.

ST20 Chg to > 50 A 8/4

Great balance sheet.

This is risky in the sense that upside relies on drug news (as with all small pharma).

Risk is mitigated by the balance sheet - it would take a long time to burn through all of that cash.

PreBuy77, T77~ 2or3 & 5A

I know it's a little obvious to play on Pain Therapeutics' name, but it is really impressive to stand back and look at the agony that small cap analgesic developers have wreaked on speculative portfolios in the last year or so. Pain, Anesiva, Labopharm, Javelin, BioDelivery Sciences, the list goes on. Is it possible that the pain medications we already have are simply good enough, and we really don't need all these upgrades? It's hard to tell whether there have been more failures in development or in commercialization. My mindset has turned long-term negative on all these companies based on their persistent ability to disappoint their investors.

Pain itself seems to have finally registered the hit they should have taken back in December with the complete response letter for Remoxy. The question now, of course, is what exactly the nature is of the FDA's concern. If, as some think, it is a technical concern related to circumventing the abuse-resistant mechanism by an ultra-dedicated abuser then the company is in good position to respond with minimal additional time and effort. It does appear that recent FDA commentary about increasing overdoses and deaths has pressured the share price, although I interpret this as a positive for Remoxy as it certainly provides an advantage in terms of accidental overdose and casual abuse. Therefore, I'll stick my hand out under this plunging knife and hope that I only sustain a flesh wound.

18.8486 at $210.00 or 11.14 per share. Sad. Very sad.

Doctor's would rather let a person in the ER suffer than get then hooked on oxy. An abuse resistant REMOXY is a big seller offering clear advantages over generics. This is a 500M+ product

This stock has an average seasonality of 13% over the mid summer

Purdue sure slipped that one in on King and PTIE. IS the increase in the buy back intended to further shore up the share price after the bomb dropped? The month of May will be interesting, to say the least. Still...................

Tons of cash and no long term debt. While this company's prospects depend on future FDA approvals, it has enough of a cushion courtesy of King Pharmaceuticals in case things do not go as planned. Even risk-adverse investors should take a look at this stock because with the likely approval of Remoxy, the payoff is too great to ignore.

Quarterly earnings keep improving and they have a non-addicting pain killer in ph III clinical trials.

This could be massive.

Nothing much to add to what has already been noted by other CAPS players.

IN Phase 3 clinicals of Remoxy (an abuse resistant Oxycontin:$2+BLN annual sales) w/results by '07 yrend. Royalty rev's to ensue. $20mln stkbuy back. Mkt Cap of under $400 mln and financially strong with $200 mln cash burning $15 mln/yr. File for patents upon finishing Phase 3 clinicals trumping Purdue. Upon IND submission receive $150 mln milestone.
payment from King Rx in need of pipeline fill! Other compounds as well!

LARGE Short Interest=30 days to cover.

Fundamentals are awesome if they can keep it up. Highly undervalued.

The world pain management market is growing at a brisk pace and any company that is ready with a compound to tap this growing market has all reasons to cheer. Having said that Pain Therapeutics, which develops drugs catering to this segment as well as oncology, has lost its sheen in the recent weeks.

The company had three investigational drug candidates in phase III clinical program as on December 31, 2006 of which two where catering to the pain management segment. The company is also engaged in a strategic alliance with King pharmaceuticals for developing abuse resistant painkillers. The company does not have any product sales and the revenue that it has been generating comes mainly from milestone payment from King pharmaceuticals and interest income.

In March of this year the company made significant progress in its metastatic melanoma division as it received approval from the government of Israel to begin human testing for the new drug in this area. The same month also saw the company licensing a new technology to treat hemophilia, a rare blood disorder.

Nevertheless, the firm was pinning its hopes on the drugs Remoxy and Oxytrex, intended for the pain management segment and which was in phase III clinical trials. The scrip was inching forward in anticipation of the trial results of these two drugs, which was expected by mid 2007. The recent news that these results may not be available until end of the year and also that the company has not started registration on a phase III study for Oxytrex has put a spanner on this and the scrip began to dip.

There is an ambiguity surrounding the Remoxy and Oxytrex development timelines and with the absence of any other sufficient news item the performance of the company scrip is expected to be muted.