Novavax, Inc. (NASDAQ: NVAX), a clinical-stage vaccine company, focuses on the discovery and development of recombinant nanoparticle vaccines and adjuvants. Through its recombinant nanoparticle vaccine technology, it produces vaccine candidates to treat both known and newly emerging diseases. The product pipeline focuses on a range of infectious diseases with vaccine candidates in clinical development for respiratory syncytial virus (RSV), seasonal influenza, pandemic influenza, and the Ebola virus (EBOV). The lead adjuvant for human applications, Matrix-M, is in clinical trial for pandemic influenza H7N9 vaccine candidate. It is also testing Matrix-M in conjunction with its EBOV vaccine candidate in a clinical trial. It is developing additional pre-clinical stage programs in a range of infectious diseases, including Middle East respiratory syndrome (MERS).

The share price of the company continued to decline downwards in March and fell some 15% and this decline appears to be the cause of the lack of clinical data and the expected cash burn rate. In the middle of September, the company had shocked and stunned investors after announcing that phase 3 trial (RESOLVE) of RSV F vaccine as a treatment for respiratory syncytial virus (RSV) in adults ages 60 and up had failed to meet its primary endpoint. The study also listed the secondary endpoint and did not show the requisite efficacy of the vaccine. Shares fell by more than 80% following this announcement and have yet to recover. The company is not giving up on the RSV vaccine and is continuing to run the phase 3 trial to prevent RSV in infants through the process of maternal immunization. It is also trying once again with older adults in a phase 2 trial with one and two formulations of doses, both with and without adjuvants. Clearly, it will take some time for additional data to emerge.

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The bigger worry for investors is the rate at which the company is burning cash. At the end of 2016, the company had $ 234.5 million in cash and cash equivalents and, while this might sound adequate, it burnt more than $ 255 million in net cash in its operating activities last year. Even though the cash burn is likely to reduce with the completion of the RESOLVE trial involving 12,000 people, the quarters ahead are likely to see the company facing other large costs, leading to potential concerns about funding. A large part of the company’s future hinges on the PREPARE trial for the RSV vaccine. Other than the RSV vaccines in the pipeline, there is nothing else in the product pipeline in clinical trials apart from an Ebola vaccine and the need for this Ebola vaccine no longer has the same urgency because of the response of many countries to the earlier crisis. Even if the company developed an Ebola vaccine and secure the necessary approvals from the FDA and other global regulatory agencies, there is no assurance that this will produce enough revenue to result in a positive cash flow.

What the market and analysts think

The stock has been given a one-year price target of $ 3.58 and has a consensus recommendation of 2.67 on Zacks Investment Research on a scale showing 1 as a strong buy and 5 as a strong sell. On December 16, 2016, the company reported an EPS of – $ 0.21 per share compared to the analyst estimate of $ -0.23 per share and earnings surprise of 8.7%. For the current quarter, analysts expect the average EPS to be $ -0.16 per share, with a low of $ -0.18 per share and a high of $ -0.13 per share.

The company is expected to make its next earnings report in the first week of May 2017. Analysts have predicted average revenue estimates of 6.17 million with a low revenue estimate of 4 million and a high revenue estimate of 9 million. A year ago, the company had sales of 4.22 million. One analyst has rated the stock as a Strong Buy, one has given a Buy recommendation and seven have rated it as a Hold. When it comes to the price target, six analysts have reported that the price target might touch a high of $ 12, whereas the average price target is $ 3.58 and the low-price target is $ 1.5. The stock was downgraded on September 16, 2016, when Citigroup downgraded the stock from Buy to Neutral.

Source: Broad Street Alerts Editor

About Broad Street Alerts

Big Opportunities in Small Cap’s

Broad Street Alerts recent profiles and track record, 534% in verifiable potential gains for our members on 3 small cap alerts alone!

January 31^st, 2017- (NASDAQ: HIMX) opened at $5.10/share and hit a high of $9.68/share March 24^th, 2017 for gains of 89% within 60 days-

February 6th, 2017- (NASDAQ: SCON) opened at $1.12/share hit a high of $1.80/share within 10 days our member potential gains- 60% –

March 6th, 2017- (OTC: USRM) opened at .035/share and hit over .17/share within 25 days for gains of 385% for our members-

These are numbers that make traders drool. Any trader in any market would fall all over themselves to see numbers like this. So, if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.

We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.

MassRoots, Inc. (OTCQB: MSRT) offers technology platforms for the cannabis industry and its mobile applications enable consumers to provide community-driven reviews of cannabis strains and products to enable the making of cannabis purchasing decisions. Through mobile applications and their Web portal, users utilize MassRoots to share cannabis content, stay on top with the legalization news and follow the dispensaries that they prefer. The mobile application features dispensary finder and menus; product pages and reviews, and Sponsored Posts 2.0 as well as business dashboards featuring MassRoots’ product data in actionable formats. It focuses on introducing other features for users and indexes the network’s public content on Google for software engine optimization (SEO) value and gains insights into consumer trends by consolidating data from various cannabis consumers.

About marijuana

New legislation is being introduced in the U.S. to legalize marijuana at the federal level. Legal sales are already more than $ 6.7 billion annually and the illicit nature of usage rules out the availability of exact figures, but it is estimated that by the year 2027, 10% of the population could be using marijuana at least once every month. The market is being depressed because of the uncertainty regarding the legality of usage, but this can be eliminated with federal legalization which would increase demand. According to Forbes, legal marijuana sales in North America total $ 6.7 billion in 2016 and these figures are only a small portion of the total sales and consumption of the substance in North America.

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Usage has been steadily increasing for your according to the ” National Estimates of Marijuana Use and Related Indicators”. In 2002, roughly 6.2% of the American population used marijuana at least once in the prior month and this increased to 8.4% in 2014. The best estimates suggest that an annual growth rate of roughly 2.4% is feasible and by this estimate, by 2027, approximately 10% of the population will consume marijuana at least once in any month. The growth rate annually suggested by Forbes of 25% appears to be reasonable.

Company overview

The company is, as mentioned, a social networking platform for the use of people enthusiastic about marijuana and has announced 1 million registered users as of March 20, 2017. Through the mobile application, consumers can rate products and strains based on efficiency, such as effectiveness in back pain and epilepsy, and provides them with a basis for making good purchasing decisions at local dispensaries. In December 2016, the company implemented an expansion through the acquisition of DDDigital, Inc, which owns Whaxy a cannabis dispensary medical marijuana ordering system. It should be noted that NASDAQ continues to refuse public listing for marijuana companies because of concerns about its legality. The stock is trading at below one dollar, but would have to trade at more than $1 for a public listing. Up to the time of rejection by NASDAQ, the shares were trading in excess of $ 1.67 and this price could be achieved again if there is a change in federal regulations and a new attempt at an IPO. Even if the current Federal legalization attempt fails, it is unlikely that the federal government will be able to successfully oppose states which have already legalized cannabis and the medical marijuana companies who are benefiting.

Recent updates from the company

MassRoots has released an update about the legal cannabis marketplace and its own achievements. The company has reported that so far in 2017, it has raised just under $ 3 million with the exercise of its $ 0.90 warrants. This development resulted in the company achieving its strongest cash position ever. CEO Isaac Dietrich said that the main goal of the company was to expand its market share to 25% to 35% of cannabis clients in regulated cannabis industries during 2017. With increasing usage of cannabis purchasing decisions in the company platform, it can deliver increased volume and traffic to its preferred dispensary partners. The company has developed a strong database of business partners and loyal users to help them to capitalize on the opportunities. MSRT has also released significant upgrades to its mobile applications and has finalized plans for key personnel acquisition. They believe that the reorganization efforts will grow revenue, expand the user base and help in the increase of overall shareholder value. It is also announced the closing of its acquisition, DDDigital and Whaxy.

The bottom line

The company has announced the launch of its updated business portal, which enables businesses to carry out targeted marketing exercises to over 1 million portal users. The businesses can review analytics, schedule posts and carry out management of product data. The company noted that the financial results for FY 2016. Did not contain income from their recent acquisition, which was only completed in the start of FY 2017. The company’s mobile app has been listed once again on Google Play. Most encouragingly, the update reported that all long-term debt has been retired by the company. They also have multiple advertising and branding deals being negotiated with leading brands from the medical cannabis industry.

Source: Broad Street Alerts Editor

About Broad Street Alerts

Big Opportunities in Small Cap’s

Broad Street Alerts recent profiles and track record, 534% in verifiable potential gains for our members on 3 small cap alerts alone!

January 31^st, 2017- (NASDAQ: HIMX) opened at $5.10/share and hit a high of $9.68/share March 24^th, 2017 for gains of 89% within 60 days-

February 6th, 2017- (NASDAQ: SCON) opened at $1.12/share hit a high of $1.80/share within 10 days our member potential gains- 60% –

March 6th, 2017- (OTC: USRM) opened at .035/share and hit over .17/share within 25 days for gains of 385% for our members-

These are numbers that make traders drool. Any trader in any market would fall all over themselves to see numbers like this. So, if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.

We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.

InMed Pharmaceuticals Inc. (OTCQB: IMLFF) is a pre-clinical stage biopharmaceutical company specializing in the research, development, and commercialization of cannabinoid-based therapies to treat human diseases with high unmet medical needs. The Company has three core assets: a proprietary Bioinformatics assessment tool to match individual (or combination of) cannabinoids against disease targets; a proprietary Biosynthesis cannabinoid manufacturing system to economically produce all 90+ cannabinoids at pharmaceutical-grade (>99.5% purity); and drug development program enabled by the two tools (explained below).

The company was founded by Chris Bogart and Craig Schneider on May 19, 1981 and is headquartered in Vancouver, Canada.

During 2016, InMed achieved some significant milestones, including induction of strong biopharmaceutical expertise in their senior management team; Financial closures to fund continued drug/disease target identification; advanced analysis of existing datasets to ensure clinical development plans are accurate and positioned to maximize the likelihood for positive outcomes; Validation and advancement of the manufacturing process; filing of provisional patents; and Expanded scope of opportunities for cannabinoid-based products.

The company continues to focus on research into fundamental benefits of cannabinoid drugs to address high unmet medical needs; selective advancement of high-potential drug candidates; identification and retention of industry veterans to define and execute the present & future drug development programs in a time- and cost-effective manner; collaboration with biotech-savvy investor groups & exploration into the partnership potential of the various programs and assets.

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The company’s innovative database that maps out various cannabinoid combinations and the various diseases that they can address was initially created to assist the company in their internal research. Recently, that database has become a core asset as other biotech companies have come forward willing to pay for access. The system currently contains more than 90 different cannabinoid structures that are assessed using a bioinformatics algorithm that screens these structures against other drugs, diseases, and genetic profiles, among other key R&D relevant criteria.

Product Pipeline

InMed Pharmaceuticals is currently developing two products in its drug pipeline: INM-750, for the treatment of Epidermolysis Bullosa (EB patient population: ~25K in USA & expected Potential of ~$1B), and INM-085, for the treatment of Glaucoma (Glaucoma patient population: >2.7M in USA & global market of >$5B).

Epidermolysis Bullosa (EB) is group of inherited connective tissue diseases that share a common manifestation of extremely fragile skin that blisters or tears easily from friction or trauma. Internal organs and bodily systems can also be affected by EB. EB is an orphan disease with no currently approved treatments and has a significant unmet medical need. INM-750 will potentially be the first therapy designed and developed specifically to modulate disease activity and to alleviate symptoms in EB. In March 2017, the company announced the filing of an international Patent Cooperation Treaty (PCT) application, an important component in providing intellectual and commercial protection for INM-750.

INM-750 includes multiple cannabinoids as the active ingredients:

• The cannabinoids included in INM-750 were selected to modulate keratin levels in patients with EB with the expectation of having a disease modulating effect
• A secondary consideration in selection of the cannabinoids was addressing symptoms of EB such as inflammation, wound healing, skin regeneration, itching, and pain
• INM-750 is being developed for topical application, designed to maximize penetration of the cannabinoids to the epidermal / dermal junction in the skin.

INM-085

Glaucoma is a group of eye disorders which result in damage of the optic nerve. The damage is most often caused by an abnormally high pressure in the eye and is one of the leading causes of blindness in the developed world.

INM-085 will be the first ever glaucoma treatment developed that is a multi-target, multi-mechanism of action therapy, utilizing multiple cannabinoids for optimal efficacy. The cannabinoids in INM-085 have been selected to reduce the elevated intra-ocular pressure (IOP) in the affected eyes and provide neuroprotection for the retinal ganglion cells (RGCs) and other optic nerve tissues.

INM-085 is designed as a topical formulation to be administered directly to the eye. The formulation that has been designed by InMed is a proprietary polymer-based formulation to facilitate absorption of the cannabinoids into the eye while also being well tolerated by the patients. They envision a once-a day application, at bedtime, to deliver effective dose levels of INM-085.

In an industry driven by discoveries of newer therapies which either replace older therapies or fulfill unmet therapeutic needs, the presence of new therapies like INM-085 & INM – 750 in the company’s basket is a key differentiating factor. This is expected to command a premium and witness relatively higher growth rates. However, products in project stage at times also constrain the company’s business risk profile until the commercial viability is established.

InMed has no debt on its books derived from borrowing. The company has financed it operations thus far through the sale of shares. In February of 2017 a total of 10,672,750 common share purchase warrants were exercised at a price of $0.13 per common share. Proceeds from the exercise of these warrants totaled $1,387,458 and 10,672,750 common shares were issued from InMed’s Treasury.  The net proceeds from this private placement will be used for general working capital purposes.

Risk Factors

THE pharmaceutical industry is highly fragmented and encompasses aspects of health care such as medicine and diagnostic kits. The industry is immune to economic cycles unlike other industries where macro-economic fundamentals play an important role in determining overall demand levels. This has translated to fairly steady historic growth rates for the industry in the past.

That said, InMed is still a pre-clinical stage biopharmaceutical company and has not yet generated meaningful revenue and will likely operate at a loss as it grows its user base and seeks ways to monetize it.  Therefore, any time or cost overrun in its ongoing projects and its impact on their business & financial profile will remain a key business sensitivity factor.

The company’s projects might entail significant incremental financing. Their ability to secure required financing will depend in part upon on investor perception of the company’s ability to create a viable business.

Furthermore, factors such as pricing ability, product quality, geographical diversity and product range would also affect the business risk profile of the company.

These weaknesses are partially mitigated by extensive track record of management with strong R&D experience with a particular emphasis on clinical development and regulatory affairs. Management’s adequate knowledge and network in the field of drug development will play a significant role in advancing InMed’s products through the clinical and regulatory process. Also, the financial risk profile of the company is benefitted by its conservative capital structure and low debt burden.

Conclusion

While the financial metrics at InMed may not appeal to all investors, it should be noted that this is a development stage company. As such, investors may want to look toward the potential involved with the company’s cannabinoid research and product pipeline

Source: Broad Street Alerts Editor

About Broad Street Alerts

Big Opportunities in Small Cap’s

Broad Street Alerts recent profiles and track record, 534% in verifiable potential gains for our members on 3 small cap alerts alone!

January 31^st, 2017- (NASDAQ: HIMX) opened at $5.10/share and hit a high of $9.68/share March 24^th, 2017 for gains of 89% within 60 days-

February 6th, 2017- (NASDAQ: SCON) opened at $1.12/share hit a high of $1.80/share within 10 days our member potential gains- 60% –

March 6th, 2017- (OTC: USRM) opened at .035/share and hit over .17/share within 25 days for gains of 385% for our members-

These are numbers that make traders drool. Any trader in any market would fall all over themselves to see numbers like this. So, if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.

We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.