Cyclo Therapeutics Inc (CYTH)

[Lazarus]

This article should give you an idea on valuations.

SAN DIEGO--(BUSINESS WIRE)--Ligand Pharmaceuticals Incorporated (NASDAQ: LGND) today announced it has acquired privately held CyDex Pharmaceuticals, Inc. for a combination of cash and contingent payments. CyDex, based in Lenexa, Kansas, had 2010 revenue of $16.3 million and EBITDA of $7.6 million, and will operate as a wholly-owned subsidiary of Ligand

READ THE FULL ARTICLE HERE

Cydex was bought out for ~ 2X their annual sales of $16.3 million.

At 59 cents per share the market cap on CTDH is close to what was paid for CyDex which had annual sales then of $16.3 million WHICH IS 10X CTDH SALES.

CTDH annual sales are ~ 1/10 of what CyDex was doing. If CTDH was valued accordingly i.e. @ 2 x sales the math is :

3,200,000 / 55,000,000 = ~ .058 -- however not likely to see the stock price that low since its book value is ~ .08.

as for this statement: Back in March, CTDH had also selected Accenture (NYSE:ACN) to provide it with data-driven clinical trial strategy and design through its Accelerated R&D Services. Dr. Tate noted that Accenture is working with CTDH at a time when the company is devising its clinical development program that will establish the safety and efficacy of Trappsol® CycloTM for the treatment of Niemann-Pick Type C disease.

Can you provide us with some more information that assures us the CTDH is still in the running here??? We already know who the NIH has chosen to work with:


Researchers from the National Institutes of Health have entered into an agreement with biotechnology company Vtesse, Inc., of Gaithersburg, Maryland, to develop treatments for Niemann-Pick disease type C (NPC) and other lysosomal storage disorders.

I think the CTDH WAS at the forefront of the Cyclodextrin / Niemann-Pick Type C disease.... but things change quickly --- esp because of this:

Since HP-ß-CD has not previously been approved by the FDA as an active ingredient for a therapeutic treatment, it also will not be easily used off-label through a doctor’s prescription. Therefore, the incentives provided by the orphan drug designation to take HP-ß-CD to approval could be significant.

Which you can read about here

WHICH I TAKE TO MEAN THAT WHOEVER GETS THERE FIRST IS GONNA MAKE A LOT OF MONEY.

So some cowboys with bigger boots and shinier spurs entered the saloon.


Where opportunity goes... money flows. Of course this why CTDH has done so well the last year. However the tides of fortunes ebb and flow and right now it looks like the tide is/has been ebbing for CTDH.

VTESSE with 10x the funding and an article on the NIH website saying they have teamed up gives me the distinct impression that that this horse has slipped to the back of the field.

fwiw --- I still have shares of CTDH... hell, I've been holding these shares in my IRA since around 1999 / 2000.


"Lazarus who???"