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Will be DDing it some more in a little bit thanks. $MLNT
News: $MLNT Melinta Therapeutics Announces Multiple Presentations at the 29th European Congress of Clinical Microbiology and Infectious Diseases (ECCMID)
MORRISTOWN, N.J., April 08, 2019 (GLOBE NEWSWIRE) -- Melinta Therapeutics, Inc. (NASDAQ: MLNT), a commercial-stage company focused on the development and commercialization of novel antibiotics to treat serious bacterial infections, today announced that researchers are scheduled to present m...
Read the whole news https://marketwirenews.com/news-releases/melinta-therapeutics-announces-multiple-presentations-at-the-29th-european-congress-of-clinical-microbiology-and-infectious-diseases-eccmid--7962006.html
* * $MLNT Video Chart 03-14-2019 * *
Link to Video - click here to watch the technical chart video
Very undervalued stock. This will be huge..$100/s by 2019. 52-wk high was $58.95. Revenue for the 4th quarter of 2018 was $35.5 million, an 739% increase than previous year. Total revenue for the year is $96.4 million. Exciting news..
Started out with cempra with 1100 shares they did a 1 for 5. Now MLNT 1 FOR 5 again. Leaves a whole 44 shares left. I'm sure I'll never see MLNT at $147.95 so I can break even. Fat chance. Tight hold on my ankles I guess.
Company stockholders approved this. I sure a hell didn't. Find it hard to believe stockholders approved this reverse split. This is BS.
* * $MLNT Video Chart 02-07-19 * *
Link to Video - click here to watch the technical chart video
$MLNT NEWS!! Vote on 2/19/19 is for approval of a reverse split, A RS is not a sign of a healthy financial company!
HEAVY SHORT HERE FOR SWING AT 1.45!! EXPECT HUGE DROP TO 1.05. NO NEWS NO REASON!!
* * $MLNT Video Chart 02-04-2019 * *
Link to Video - click here to watch the technical chart video
* * $MLNT Video Chart 01-02-2019 * *
Link to Video - click here to watch the technical chart video
More than a bit unjust, unkind and contrary to their obligation to the shareholders.
I finally bailed out and dragged my remaining pennies away, bleeding and sniveling.
It looked so good for a while...I wonder how much of that appearance was due to misrepresentation by management?
It's academic i suppose.
New article brought me here.
Drug resistance is growing rapidly,
and it seems very little is being done about it.
This could be a good play going foward, excited to be here.
https://seekingalpha.com/article/4215131-melinta-dan-coat-hurry
Management screwed shareholdres
Here as well.
Painful and expensive...I remain pizzed off at the singularly inept bunglers.
Agreed Johnny....It's more than a little tragic.
Innocent folks continue to die unnecessarily and we lost a bundle!
That hurt! I bailed out belatedly.
Obviously, management was inept and remained much more interested in their personal finances than either the stockholders or sick patients.
(Insert vivid profanity here!)
Heading to lower lows I think. What a shame as Cemp fumbled with a game-changing drug!
Would have saved 1/4 mil, but I had plenty of chances to trade out of CEMP at a profit. I drank the kool aide
Lets us both listen to your wife from now on, please...grin
I thought it was good to based on being on many calls. My wife spotted the liver issue early on, but Pravda really downplayed it
The buyout was a scam from day 1 though
Groan: You've been right all along on this one, i'm afraid.
CEMP looked so good and i was dumb enough not to bail when i had the chance.
Thanks for your expertise Johnny.
My guess is this even goes lower. CEMP committed robbery and everyone who voted for this stupid deal deserves to lose all their money
Melinta Therapeutics: Could The H.R. 6294 Bill Improve The Prospects Of Antibiotic Innovators?
Jul. 5, 2018 11:45 AM ET|5 comments | About: Melinta Therapeutics (MLNT), Includes: CDTX, MDCO, PRTK, TTOO
BioSci Capital Partners
BioSci Capital Partners
Integrated biosci research, consultant
MARKETPLACEIntegrated BioSci Investing
Summary
Despite that most companies in our various Specialty Reports have outperformed, the performance of the infectious disease innovators like Melinta are subpar to date.
There are hurdles that deter newly approved antibiotics to generate blockbuster sales.
Novel antibiotics are maintained as the last-line reserves to prevent antibiotic resistance.
Stellar new policies pioneered by the FDA Commissioner (Dr. Scott Gottlieb) can significantly improve the fundamentals for these companies.
We present a fundamental analysis and pertinent updates on Melinta. And we wish to share this article with all readers in celebration of July 4th.
This idea was discussed in more depth with members of my private investing community, Integrated BioSci Investing.
Life will have terrible blows in it, horrible blows, unfair blows. It doesn't matter. And some people recover and others don't. And there I think the attitude of Epictetus is the best. He thought that every missed chance in life was an opportunity to behave well. Every missed chance in life was an opportunity to learn something and that your duty was not to be submerged in self-pity. But instead to utilize the terrible blow in constructive fashion. That is a very good idea. - Charlie Munger
We recently increased our focus on the Specialty Reports, as part of our increasing emphasis to cover various niches in bioscience for subscribers of Integrated BioSci Investing. Most equities in our five Specialty Reports have outperformed the market. Nevertheless, the infectious disease innovators - Melinta Therapeutics (MLNT), Paratek Pharmaceuticals (PRTK), Cidara Therapeutics (CDTX), Achaogen (AKAO), and T2 Biosystems (TTOO) - are lagging behind. Regardless of a heighten demand for novel anti-infectious agents, there is a key reimbursement issue that makes investing in this niche unprofitable. Interestingly, highly promising policy changes - initiated by the stellar FDA Commissioner (Dr. Scott Gottlieb) - can substantially improve the investing prospects of these firms while delivering hopes to patients. In this research, we'll feature an update of our investing thesis on Melinta.
Figure 1: Melinta stock chart. (Source: StockCharts).
About The Company
First thing first, we'd like to briefly go over the background on Melinta for new investors. If you are already familiar with the firm, we recommend that you skip to the next section on the H.R. 6294 Bill. Melinta Therapeutics operates out of Chapel Hill, NC. The company is the product of the merger with Cempra that completed on Nov. 06, 2017. The reorganization gave Melinta and Cempra stockholders 51.6% and 48.4% ownership of the new company, respectively. We explicated in the prior research:
With the FDA approved delafloxacin (Baxdela) from Cempra, Melinta now has more option to execute the mission, in developing and commercializing antibiotics for the treatment of serious infectious diseases. Moreover, the mutually beneficial union enabled Cempra with Melinta's abundant cash and resources. Accordingly, the firm now has a highly enriched pipeline of antibiotics to service the infectious diseases market (one that is strongly in demand of better molecules to treat bugs increasingly-resistant to available medicines).
Figure 2: Therapeutic Pipeline. (Source: Melinta Therapeutics). Note: ABSSSI: Acute bacterial skin and skin structure infections || CABP: Community-acquired bacterial pneumonia || cUTI: Complicated urinary tract infections || ESKAPE: The ESKAPE pathogen program includes a focus on multidrug- and extremely-drug-resistant versions of the following pathogens: Enterococcus faecium, Staphylococcus aureus, Klebsiella pneumoniae, Acinetobacter baumannii, Pseudomonas aeruginosa, Enterobacter species and Escherichia coli || QIDP: Qualified Infectious Disease Product.
Increasing Antibiotic Resistance
With rising elderly population, more people are becoming sick and thereby increases antibiotic use. The more prescription, the higher the chances that bacteria will develop resistance. The statistics from the Center for Disease Control and Prevention ("CDC") showed that annually, there are at least 2M people who get serious bacterial infection requiring one or more antibiotics. Due to their increasing utility, the "work-horse" antibiotics that we currently have will become obsolete in the future.
From the economic view, antibiotic-resistant raises the financial burdensome on the U.S.'s healthcare spending. Accordingly, to the CDC's Antibiotic Resistance Threat Report, the total annual cost of antibiotic resistance amounts to the staggering $20B. Moreover, the additional society costs from productivity loss can be as high as $35B.
Reimbursement Keeping The Lid On Melinta Shares
Notably, the reimbursement for a novel antibiotic is strikingly different from that of other therapeutics. Physicians are strongly encouraged to prescribe a newly approved drug. Therefore, this translates into increased earnings for the company to offset (the approximate $1B used to innovate a molecule from bench research to commercialization).
In contrast, a newly approved antibiotic is being kept as the last-line reserve in the effort to deter resistance. Hence, this lowers the sales volume. Without much sales, the companies cannot get back their capital invested. Ultimately, the current situation will deter further innovation that, in and of itself, is much needed in this space. And, the health consequences will boil down to an increased mortality and morbidity for us all.
H.R. 6294 To Potentially Ameliorate The Situation
In the prior Rounds Report, we note that the FDA is working with Congress in the development and launch of various campaigns to help the antibiotic innovators. One policy is the "qualified infectious disease product ("QIDP") designation. Interestingly, new applications considered as QIDP can receive the fast track designation, priority review, and possibly a 5-year extension of any exclusivity. Second is the new ("LPAD") pathway that streamlines the approval process. LPAD requires a much smaller and shorter clinical trial yet still ensuring the adequate safety for approval.
That aside, the most notable development is the new incentive program being pushed by the FDA Commissioner (Dr. Scott Gottlieb): hospitals can buy the newly-approved antibiotics for a flat licensing fee rather than conventional sales based reimbursement. Under the new structure, a company can procure significant revenues on a novel antibiotic (regardless of how much of the drug is being prescribed). Just weeks into Dr. Gottlieb's announcement, notable politicians drafted a new bill that pushes for greater exclusivity extension for new antibiotics while favoring the flat licensing fee structure. According to a research by BioCentury:
Two members of the House Energy and Commerce Committee introduced legislation that would create a new "pull" incentive pathway for priority antibiotics, providing manufacturers a transferable award that could be worth $1B or more. The bill, the Re-Valuing Anti-Microbial Products (REVAMP) Act of 2018, aims to de-link the returns an antibiotics company receives from the volume of drugs sold by providing a high-value award upon approval of antibiotics to treat multidrug-resistant pathogens. The bill, H.R. 6294, is sponsored by Rep. John Shimkus (R-Ill.) and co-sponsored by Rep. Tony Cárdenas (D-Calif.).
Of note, it is not far from the truth that the whole process of drafting a bill to its passage into its approval can take 2-3 weeks. And yet, only 10% to 12% of the bills are eventually voted into laws. Therefore, the statistics are seemingly not favorable. Despite their small chances of success, Dr. Gottlieb is known for getting things done. His skills and determination to approve more drugs, ensuring public safety and access to medicine are stellar. If H.R. 6294 eventually becomes law, this can be a major catalyst for the infectious disease innovators like Melinta.
Financial Assessment
On May 08, 2018, Melinta reported the Q1 2018 earnings (that ended on March 31). As follows, the company posted $11.8M in product sales. This included the addition of Vabomere, Minocin, and Orbactiv as of Jan. 5, 2018, from The Medicines Company (MDCO) acquisition. Per figure 3, the total revenues came in at $14.8M compared to $22.5M for the same period a year prior. The higher figure for last fiscal was due to the upfront payment from Menarini (re the ex-US Baxdela licensing agreement).
Figure 3: Key financial metrics for Q1 2018. (Source: Melinta)
The research and development (R&D) logged in at $16.1M compared to $12.9M for the similar comparison. The higher spending was due to the more employee count (as a result of the Cempra merger and the new business from The Medicine Company). Moreover, the ongoing community-acquired bacterial pneumonia ("CABP") registration trial for Baxdela added more cost. For the respective periods, there were $29.4M ($0.95 per share) and $5.8M in net losses.
Pertaining to the balance sheet, there were $91.5M in cash and equivalent for Q1. The firm also raised $123M in the offering of 22.0M common shares on May 29. Therefore, the cash position is substantially improved to $214.5M. Based on the $34.6M quarterly burn rate, there should be adequate funding for operations into early 2020 (prior to any additional offering).
Potential Risks
As with any investment, there are pertinent risks. At this point in its growth cycle, the main concern for Melinta is whether various approved molecules will generate increasingly significant sales. As elucidated, the hurdles to blockbuster sales for newly approved antibiotics are nearly insurmountable. The chances of H.R. 6294 to pass is quite low. Nevertheless, if it can be passed, the fundamentals of the company will increase by leaps and bounds. The other risk is the increasing cash burn that will subject the stock to further dilution.
Conclusions
In all, we maintain our buy recommendation on Melinta but lowered its stars rating to a three out of five stars rating. And, we decreased the price target to $10 (to be reached within two to three years). As a merger with Cempra, Melinta has an ample cash to fund further innovation. The cash position was strengthened with the public offering that raised $123M. The three molecules acquired from The Medicine Company (Orbactiv, Minocin, and Vabomere) enabled Melinta to leverage on The Medicine Company's sales team to launch its newly approved molecule (Baxdela) for ABSSSI. The various programs being pushed by the FDA serve as the catalysts to improve the company's fundamentals. The most important is H.R. 6294 that was recently introduced. Despite its small chances of being passed, if it gets voted into law the investing story on Melinta can change drastically. Of note, our reservation on raising the star rating is due to the small chances of passage for the aforesaid bill (and the reimbursement issue centering the infectious disease innovators).
Last but not least, we wish to send our July 4th greeting to our subscribers and all readers. May we remember those who sacrificed their lives for our freedom. God bless America and those who sacrificed for us.
Author's Notes: We're honored that you took the time to read our market intelligence. Founded by Dr. Hung Tran, MD, MS, CNPR, (in collaborations with Analyst Vu, and other PhDs), Integrated BioSci Investing ("IBI") is delivering stellar returns. To name a few, Nektar, Spectrum, Atara, Madrigal, and Kite procured over 155%, 177%, 279%, 258%, and 83% profits, respectively. Our secret sauce is extreme due diligence with expert data analysis. The service features a once-weekly exclusive Alpha-Intelligence article, daily analysis/consulting, and model portfolios. And, we invite you to subscribe to our marketplace now to lock in the current price and save money for the future.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Our research articles are best used as starting points in your own due diligence. We are not registered investment advisors and our articles are not construed as professional investment advice.
Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.
https://seekingalpha.com/article/4185550-melinta-therapeutics-h-r-6294-bill-improve-prospects-antibiotic-innovators
Melinta Therapeutics: Undervalued With Upcoming Milestones
Jul. 5, 2018 12:15 PM ET|4 comments | About: Melinta Therapeutics (MLNT), Includes: MDCO Bret Jensen
Specializing in biotech stocks, Small Caps, managing optimized portfolios
MARKETPLACEThe Biotech Forum
Summary
Today we look at Melinta Therapeutics, a small biopharma concern that made a huge acquisition late last year.
The company is picking up positive analyst support and had myriad potential milestones in the second half of 2018.
We take a deeper look at the company's prospects and outlook in the paragraphs below.
This idea was discussed in more depth with members of my private investing community, The Biotech Forum.
A concept is a brick. It can be used to build a courthouse of reason. Or it can be thrown through the window.” ? Gilles Deleuze
Today we look at a 'Tier 3' biopharma concern that is undergoing a transformation due to a deal late in 2017. The shares look undervalued and ideal for accumulation or as a Buy-Write option candidate
Company Overview:
Melinta Therapeutics (MLNT) is a New Haven based commercial-stage pharmaceutical company. It is focused on discovering and commercializing various anti-infectives for the treatment of bacterial infectious diseases. The company was transformed late last year when it purchased the infectious disease business of The Medicines Company (MDCO). This transaction closed early this year. This business included approved products Vabomere, Orbactiv® (oritavancin) and Minocin® for Injection. This deal called for Melinta to pay $165 million in cash upfront. It also provided The Medicines Company with $50 million in common stock and is on the hook for $25 million in cash 12 months early in 2019 and $25 million more early next summer as well as tiered royalties on net sales. The stock currently has a market capitalization just less than $400 million and sells right at $6.50 a share.
Product Portfolio & Pipeline:
These recently acquired products delivered almost all of the just under ~$15 million in revenue the company reported in the first quarter. Melinta has an evolving pipeline as well which can be seen here.
The company should have a busy second half of 2018 and it listed numerous milestones that should take place before the year closes out on its last conference call including:
Pivotal Phase 3 data for Baxdela in CABP
Vabomere EMA regulatory approval decision
TANGO-2 additional data and potential publication
Additional ex-U.S. submissions for Baxdela in Central and South America
Ex-U.S. partnership opportunities for Vabomere, Orbactiv and Minocin for Injection
IND-enabling studies for the lead ESKAPE compound
Analyst Commentary & Balance Sheet:
Cantor Fitzgerald came out Monday with a new Outperform rating and $15 price target on Melinta Therapeutics. Cantor's analyst provide the following commentary to support his positive view on the company and stock
"We are initiating coverage of Melinta’s stock with an Overweight rating and $15 PT. Upward earnings revisions and multiple expansion will drive the shares higher, in our view. We think a greater appreciation for the company’s four commercial, antibiotic drugs (Baxdela, and its growing pipeline (new drugs, international expansion, additional indications) will increase earnings estimates to levels not yet reflected in consensus expectations. Also, MLNT is considering adjacent opportunities, which means it could become a diversified hospital company. This should improve its trading multiple, in our view.”
Prior to that, WBB Securities upgraded MLNT from Hold to Speculative Buy with a $8 price target on May 25th. Two weeks before WBB's call, Robert W. Baird upgraded this name to Outperform from Neutral with a $15 price target. This is the only analyst commentary I can find on this small cap concern so far in 2018.
The company ended the first quarter with cash and cash equivalents of $91.5 million. It then raised just under $125 million via a secondary offering in late May, bringing its cash balance just past the $200 million level.
Verdict:
The company is probably a few years from profitability. However, a transformation seems to be underway at Melinta and the stock is significantly under the median analyst price target. The company is also receiving its fair share of positive analyst commentary of late as well. With its funding needs addressed and numerous potential catalysts schedule for the rest of the year, a small stake within a well-diversified biotech portfolio seems warranted at current trading levels.
Option Strategy:Image result for Stock Purchase
I personally would accumulate an initial stake or to increase exposure to MLNT via a Buy-Write order. Using the January 2019 $7.50 call strikes, fashion a Buy-Write order with a net debit of between $5.30 to $5.40 a share range (net stock price - option premium). This mitigates some downside risk and sets up a more than solid potential return for its six and half month 'hold' period.
Those who deny freedom to others, deserve it not for themselves” ? Abraham Lincoln
Author's Note: To get these types of articles and Instablogs on attractive biotech and pharma stocks as soon as they are published, just click here for my profile. Hit the big orange "Follow" button and choose the real-time alerts option.
Disclosure: I am/we are long mdco,mlnt.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
https://seekingalpha.com/article/4185554-melinta-therapeutics-undervalued-upcoming-milestones
* * $MLNT Video Chart 05-25-18 * *
Link to Video - click here to watch the technical chart video
While their initiative to encourage prudent use of antibiotics is admirable and public spirited....I cant help but think they have lots of fish to fry and lots of fish they haven't even gutted yet.
Fish of this sort don't age well and need urgent processing.
Imagining the CEO making pronouncements with his mouth overfull.
Hi Johnny:
It's easy to imagine that they are too busy, um, synergizing...
and suffering raging hierarchical disputes and maneuverings to bother about mere , incidental, minority stockholders.
Wonder if they can actually make it work?
The history of mergers is a mixed bag at best and neither company was thriving. It would take a brilliant CEO to make it work and i don't see evidence of one.
Instead of advancing the product and the science, they appear to be concentrating on the business of business instead.
Would be nice to get an update from CEO. No real updates since the CEMP RM
Melinta Therapeutics Inc. (NASDAQ:MLNT), a commercial-stage company developing and commercializing novel antibiotics to treat serious bacterial infections, announced that the company’s merger with Cempra, Inc. has closed. Melinta Therapeutics will commence trading on November 6, 2017 on the NASDAQ Global Market under the symbol "MLNT."
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