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I'm literally waiting for their nonexistent IR/media team to offer a POSSIBLE generic option towards the treatment of covid19 and having the day traders shoot this up 200-300%. These days any whiff of COVID19 prospect is enough to make a stock skyrocket. Hell, even the opinion of a CEO believing they have something without any data/facts to back them up is enough.....
You stumbled across EXCELLENT news that I would imagine would make this balloon...but here we are, discovering it ourselves.
We've had this since 2016. ANIP should be screaming it off the bloody rooftops at this point.
BAUDETTE, Minn., May 9, 2016 /PRNewswire/ -- ANI Pharmaceuticals, Inc. ("ANI") (Nasdaq: ANIP) today announced the commercial launch of 50mg and 150mg fenofibrate capsules USP (the authorized generic of Lipofen®) in the ANI label. The distribution rights to fenofibrate were acquired earlier this year and, as previously announced, ANI had expected to transition these products to the ANI label in the second quarter of 2016. In 2015 the authorized generic for Lipofen® (fenofibrate capsules 50mg and 150mg USP) generated $21.9 million in revenues.
Arthur S. Przybyl, ANI's President and CEO stated, "We are pleased to have successfully transitioned the fenofibrate authorized generic to the ANI label on schedule."
About Lipofen® Capsules
Lipofen® (fenofibrate capsules) is a peroxisome proliferator receptor alpha (PPARa) activator indicated as an adjunct to diet: to reduce elevated LDL-C, Total-C, TG and Apo B, and to increase HDL-C in adult patients with primary hypercholesterolemia or mixed dyslipidemia and for treatment of adult patients with severe hypertriglyceridemia.
RG
article on SA dated June 29, 2020. I've been traveling a bit so not sure if this is known to everyone here by now:
https://seekingalpha.com/article/4356241-ani-pharmaceuticals-significantly-undervalued?mod=mw_quote_news
The drop isn't in line with a prior rise in shorts as has been noted in past years.
Art is also hit by the drop too, including those that recently purchased I think it was back in March.
I bought more.
GLTA
RG
Still seems like higher volume with very little influence on the PPS. Not sure how to interpret that.
RG
I think it's just the close of any open positions held during the day. Cause the price didn't overtly fluctuate as a consequence to it.
-RG
207,682 shares traded at closing? Just closing out end of day orders?
RG
Given the turnaround on the first submission- they may have realized setting up a formal meeting to discuss the filing would've taken longer than simply re-filing. Government agencies are crippled by COVID-19, there's going to be a lag with everything...higher up the tree may correlate with longer delays. Just speculating.
-RG
Short interest actually dropped 1/3 of a percent. Hopefully the start of next week leads to a run up towards the meeting.
-RG
I suspect they typically have a previously scheduled date to sell/buy shares quarterly to avoid the risk of insider trading. Which is why in the past, multiple form 4's are made around this same multi-day window.
No one is buying, nor did anyone sell, and what AP sold most recently was negligible given what he owns.
Short interest remains static through April, May numbers should be released any day now. If this stock was anticipated to collapse, I'd imagine SI would've ballooned in April. It'll be interesting to see how those numbers compare for May.
-RG
A total of 28,200 shares traded at 1226-1227 at around $35.00. Volume is pretty high this morning breaking 100k shares at the time of this post. An extension from yesterday's high volume session starting at around 1300? But the price remains relatively flat (although up)?
RG
Thanks silvr- your research is valued and appreciated.
"Here, Cabaret’s duty, pre- and post-assignment is to pay money. And while Cabaret bemoans that “every party with an interest in the Gilead payments has agreed [to] protections, such as an indemnity or escrow,” Cabaret Opp. Br. at 17, Cabaret fails to identify where in the Tripartite Agreement such protection exists. Contract rights are not subject to a popularity test. Nor is it relevant that ANI allegedly sought unrelated concessions from Cabaret as a precondition to entering any protective agreement.6 Whether ANI’s behavior was overly aggressive or discourteous is not for the Court to say. What is for the Court to say is that Cabaret points to no legal authority that entitles an obligor to void the obligee’s assignment of rights simply because the obligor finds the new assignee to be annoying."
Pretty brutal.
It was dated April 26, pushing two weeks out--Did I miss a public statement?
RG
They were reading off a script so it didn't have too much emotion as far as I could tell. Walsh acting as interim CEO speaks volumes to a sale given his track record, IMHO.
On May 4, 2020, the Board appointed Patrick D. Walsh, a member of the Board of Directors of the Company (the “Board”), as interim President and Chief Executive Officer, effective May 11, 2020.
Mr. Walsh has been a member of the Board since 2018. He is President & Managing Member of Diligence Team and Diligence Group LLC, consulting practices he founded and are based in Durham, North Carolina, and brings over 35 years of experience in the pharmaceutical industry.
From May 2019 to April 2020, he was co-founder and CEO of TriPharm Services, an injectable manufacturing business which was acquired by Alcami. From 2015 to February 2019, Mr. Walsh was the chief executive officer of Avista Pharma, a private equity backed global provider of contract manufacturing, development and analytical testing services to pharmaceutical and biotechnology clients that was acquired by Cambrex. Prior to Avista, from 2010 to 2014, Mr. Walsh was the chief executive officer of AAIPharma Services Corporation in Wilmington, North Carolina, a private equity backed global provider of contract manufacturing services. Mr. Walsh’s earlier career includes serving as chief executive officer of Kadmus Pharmaceuticals, Inc., in Irvine, California, and serving as president and chief operating officer of publicly-traded Gensia-Sicor Pharmaceuticals, Inc., which was acquired by Teva for $3.2 billion. Mr. Walsh currently serves as an independent director of the Board of Directors of Avid Bioservices, a publicly-traded company based in Tustin, California and serves on its corporate governance committee and is chair of the compensation committee. He is also an independent director of the Board of Directors of Institute Chemica Emiliano (I.C.E.), a privately held specialty chemical company based in Milan, Italy. He is also an Operating Partner (part-time) to healthcare private-equity firm Ampersand Capital, based in Wellesley, Massachusetts.
In connection with Mr. Walsh’s appointment as interim President and Chief Executive Officer, the Company agreed to pay Mr. Walsh an annual base salary of $630,000. Additionally, Mr. Walsh will receive 7,050 shares of restricted stock which will vest over a one-year period; provided, however, that such restricted stock shall immediately vest in full on the date Mr. Walsh’s service as interim President and Chief Executive Officer terminates.
-RG
Can anyone speak to the sheer number of shares traded between 1304 and 1600? During this period of time, the volume was excessively high yet the share price was maintained in an extremely tight window between $33.50 to 34.00? This time also coincides with the first drop to that level with little deviation despite trading volume.
I'm a better scientist than analyst.
RG
Interesting article explaining some of their behavior in our new Covid-19 world:
strangest earnings season
tl/dr: no one knows wtf is going on.
-RG
It does seem dramatic given their reasons for the cut. Might've gotten burned or reached peak frustration.
The next concerns would be how the institutions react in the next few days and whether anyone on the inside is making any trades. We varied almost 20% today on 100k shares traded- which is not a lot in the grand scheme of things. Art and company also lost a lot of money on the value of their shares- and although we can say the volume they've accumulated offsets their loss- a loss is a loss, and people like Art don't like losing value on anything, whether they own one share or one million. My fear is Art dumps his shares. That would be extremely telling. If there's growth potential, regardless of the way he made his exit, he'd retain his shares.
I would like to believe they didn't offer a Q&A bc it's not feasible given the way they did the call. But I know that's a biased excuse. They easily could've done it a hundred different ways to accommodate questions even in our covid-19 world, but they didn't. Why they didn't is concerning--They want to prevent certain information from hitting the public's ears, this is fact...my bias says bc of confidentiality, but my concern is the market's reaction.
-RG
Cantor Fitzgerald analyst Brandon Folkes downgraded ANI Pharmaceuticals to Neutral from Overweight with a price target of $40, down from $78. The analyst sees uncertainty around the strategy that a new permanent CEO will bring. This, along with the recent FDA refuse to file letter of Cortrophin Gel, and the uncertainty that COVID-19 has placed on all company base businesses, warrants a cautious approach pending more visibility, Folkes tells investors in a research note.
-RG
The fact they're building inventory is bullish to me. The stock has been everywhere today--6k shares traded brought this up nearly 10%. They clearly cannot speak to the concerns investors have, and it's most likely due to a risk in breach of confidentiality.
Art wasn't picked to continue growing the company. Remember, he was the CEO up to this point and we're at where we're at because of his leadership, good or bad...if he didn't want to leave the company, yeah, it's gonna sting. Sometimes the business becomes an emotional investment and it's hard to make the right calls when they need to be made (speaking to my own handling of owning this stock as well). I'm looking forward to how things play out over the next few months, though, cautiously optimistic.
GLTA
-RG
A run up towards the 7'th would be great. I know they posted the call in number but I thought it was going to be live streamed? I'm curious how the Q&A is going to play out. I have low expectations they'll reveal anything regarding Libigel, shake up of the board, or the CEO's departure.
RG
Another thing to consider in all this is we've had a series of blows yet, there hasn't been an article out mentioning any of it. I mean the CEO is heading out the door in a week and it's crickets. The Refusal to File letter? Yes, the stock dropped to where it was a few days prior but I don't recall seeing anything written up on the subject that wasn't a form letter.
Couple this with ZERO mention/inquiry on Libigel either through the quarterly meetings or via any articles written on the company since.
I'd imagine we'd have short interest sky rocket, articles tarnishing the brand, but nothing...
-RG
Zacks bot article came out just now:
One company to watch right now is ANI Pharmaceuticals (ANIP - Free Report) . ANIP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
We should also highlight that ANIP has a P/B ratio of 2.39. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.80. Over the past year, ANIP's P/B has been as high as 4.97 and as low as 1.73, with a median of 3.81.
Finally, investors will want to recognize that ANIP has a P/CF ratio of 9.85. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.64. Over the past 52 weeks, ANIP's P/CF has been as high as 17.56 and as low as 7.11, with a median of 14.40.
These are only a few of the key metrics included in ANI Pharmaceuticals's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ANIP looks like an impressive value stock at the moment.
-RG
You're assuming a government run agency is the one that has their shit together. I wouldn't make that assumption. I've dealt with government agencies as it pertains to scientific research. LD is on point on this. Nothing to add that LD already hasn't mentioned.
It's a frustrating process but AP's statement on the subject reveals his confidence. He could've said they need to rethink/reconsider/revise/redo, or take the FDA points into consideration but he didn't say those things.
GLTA
RG
Really good point. I also worry they may have half expected this--kinda last straw triggering the CEO's termination. We're back to where we've been hovering at for awhile, maybe the recent run up the other day was to pad this blow?
-RG
Good volume and direction compared to previous weeks. Short interest went up a little bit from 5.98% from what I remember to 6.36%.
RG
Great sleuthing!
I've looked at a few mergers/purchases Ampersand has performed, BrammerBio to Thermo Fisher may be the largest at $1.7B? But I can't find any publicly traded companies held in their portfolio (before bo/merger)? Anyone uncover any past mergers/sales to see how well they actually do in this respect? I noted anywhere between $100m and $250m in annual revenue for Brammerbio- I know it isn't apples to apples, and a lot of factors go into that value etc. But if they show a pattern of undervaluing in an effort to sell quick, it'll be a frustrating direction we'll be heading--this would be my only concern at this point.
Also, I think the plan was always to go this direction after Corti was submitted, I also think Art knew this. This seems to be moving pretty quickly at this point to not suspect the dominoes were in motion well before March/April.
RG
The volume isn't much different pre-covid-19. It takes very little to move this stock- good or bad. It's a waiting game...unfortunately it seems like it always is...new CEO may fix this.
RG
Another thought on change of command:
Art does seem like a "right the ship" CEO. There's also CEO's that specialize in mergers/BO as well. The BOD may need someone that intends to take the company in this direction, while Art may either not have this strength/networking ability, or simply disagreed with this direction and left (which I personally don't see him doing). It'll be interesting if Art washes his hands completely of ANIP or he's retained on the board. It may reveal more about the companies intent.
RG
This also relates to how the BOD/CEO is promoting the company to garner this interest. I mean JTFM hasn't gotten a response after reaching out to investor relations- the ones I've gotten were condescending and non-informative/supportive...sometimes the culture in a company can influence this and it often comes from the top down.
Think of a politician trying to get votes, they're out there, networking, scratching backs, greasing wheels. I never got the impression Art was networking in that way- I mean, we own a canadian plant, but to what greater end, I may have missed? How have we used this resource to promote ourselves? How has that brought in more investors? Every announcement should be the greatest thing to happen to the company, but every single one seems to simply fizzle.
My hope is the new CEO brings in a network of investors to reinvigorate interest in the company.
-RG
I agree with the sentiment on the board- could've been announced with better timing and intent, but however positive our view was on the CEO, he can't move forward without the board's approval on actions that drove to form our positive sentiment in the first place. And remember, there are things that we did not like about Art: the lack of promotion, zero discussion on a wholly owned product that's collecting dust on their shelf, he was originally keen to be transparent during the merger, but that went away pretty quickly, and for me personally, I think his ability to promote and represent the brand is a bit dated- if I was CEO, I'd fire their web designer, and hire someone that will make their website something that doesn't look like it was made on a Tandy computer.
In the end, it's the BOD that voted to terminate the contract or it was the CEO terminating it on his own:
If we consider the CEO choosing to leave, it could be for a thousand reasons that we may never know (I even delved into obituaries thinking someone close to him died and he needed out of the game). I personally don't believe it was a conflict with his own contract. Maybe the challenge is gone-maybe he's a "right the ship" kinda CEO and finds no value or interest in being at a company that is sailing in the right direction. I know a lot of CEO's that have this personality. I also know CEO's make substantially more money righting the ship than simply staying a course.
IF we consider the BOD terminating it and the CEO forced to accept it--which often happens--there's going to be a point where the BOD realizes keeping him on would compromise the growth of the company, and that difficult decision needs to be made. I think they've already found someone, but can't reveal this bc they're still vetting other candidates (this is also often done).
We worry bc we're familiar with Art, and the new person coming in is unknown, could tank the company, but the BOD, Blackrock, MVP won't allow that to happen unless they want it to happen.
Change is scary but it's a good thing.
-RG
It seems it's behind a paywall- most likely we'll see it on Monday.
RG
Posted today on Seeking Alpha:
ANI Pharmaceuticals Submit Application for Relaunching Cortrophin Gel
ANI Pharmaceuticals Inc. (ANIP) announced that it has submitted a Prior Approval Supplement to the FDA. The supplement has been filed with the Endocrinology Division of the regulatory body. The application pertains to the re-commercialization of Purified Cortrophin® Gel (Repository Corticotropin Injection USP) (80 U/mL). The drug was initially approved by the FDA in 1954 and had over 54 indications on its approved label. Some of the most prominent conditions treated by the gel were ulcerative colitis, systemic lupus erythematosus, and multiple sclerosis.
ANI Pharmaceuticals has spent over $100 million for re-establishing and validating the commercial corticotropin active pharmaceutical ingredient (API) and Cortrophin® Gel drug product manufacturing processes. The company had acquired the NDA for the gel from Merck (NYSE:MRK) in 2016. ANI has attached a comprehensive characterization package with its PAS. The package provides in-depth information about the API as well as about Cortrophin Gel. It has been proved that the drug meets both the historical release specifications and modernized release specifications.
The US corticotropin market currently has only one product H.P. Acthar® Gel from Mallinckrodt (NYSE:MNK). Earlier, there were more than half a dozen approved and active corticotropin NDAs. However, all but ANI's Cortrophin® Gel and Cortrophin® Zinc were withdrawn and are not available in the markets. Dr. Mark Ginski, Vice President of Corticotropin Development for ANI said:
We are very pleased to have submitted this PAS on schedule and in hopes of bringing Cortrophin® Gel back to the market for both patients and physicians."
The company said that it has brought significant modernization to various processes.
ANI also stated that it plans to market the drug at a substantial discount to the current pricing of H.P. Acthar Gel. The company said that it also aims to reduce drug costs for the US government as nearly 60 percent of corticotropin spending is done by the government through its Medicaid and Medicare programs. The FDA now has a four-month period to provide a response to the application and to decide whether the submission is complete or not.
The PDUFA goal date for the FDA has been set on July 23, 2020. The company said that it anticipates the immediate launch of the drug depending upon the approval. The market for repository corticotropin injection 80 U/ml is pegged at $950 million. ANI Pharmaceuticals has a robust drug development pipeline with a focus on developing treatments for oncolytics (anti-cancers), hormones and steroids, extended-release products and narcotics.
ANI Pharmaceuticals also provided an update about the coming departure of its CEO Arthur S. Przybyl, who also serves as the company President on May 10, 2020. Mr. Przybyl said:
After 11 years as President and CEO of ANI, the Board and I have determined that the time is right to transition to new leadership as the Company prepares to launch Cortrophin® Gel and expand its portfolio of specialty pharmaceutical products."
The board is, currently, searching for new CEO and president.
This last statement seems like an afterthought. I believe we hit a nader on price as a consequence to Art's dismissal specifically, how low it can go is going to be dependent on the BOD and Art's delivery of Earnings (which I suspect he'll be doing as his final act as CEO).
-RG
"ANI Pharmaceuticals Inc (Symbol: ANIP) saw options trading volume of 440 contracts, representing approximately 44,000 underlying shares or approximately 41.5% of ANIP's average daily trading volume over the past month, of 105,955 shares. Particularly high volume was seen for the $60 strike call option expiring October 16, 2020, with 200 contracts trading so far today, representing approximately 20,000 underlying shares of ANIP."
RG
haha- I mean Libigel Round 2- Electric Bugaloo....More things have happened that make less sense. ;)
-RG
They could've had a mutual intention of his exit after fda acceptance. They'll have an interim CEO if they can't find one within a month. Often they'll already have one picked- just need to negotiate a contract. But again, if there is a bigger picture we can't see due to disclosure- they may have someone picked out from another company who we'd merge with or be bought out by. It's anyone's guess.
With blackrock- they're probably behind the decision too, and they're there to make money.
It doesn't sound hostile- especially his staying for a month- they typically escort you off the campus if he was fired.
Everyone is down today- again- not seeming to be reactive to the CEO's departure.
He seemed like a good guy at the helm- but yeah, the past few quarters were pretty bad and they seem incredibly poor at pumping the company up.
Given everyone is living life in the worst timeline possible- imagine if they ask Simes to man the helm...that would be a full circle F you to tenured shareholders.
RG
27k shares sold the last minute of trading--about 18% of what was traded today. Volume is still pretty low to consider the drop today a "reaction"
Art sold on 3/28, 3/29 6883 shares at an avg of 39.25. Then sold again on 04/06 and 04/07 5397 shares at 43.57.
Stephen Carey sold on 3/28, 3/31 1460 shares at an avg of 39.25. Then sold again on 04/06 612 shares at 43.22.
Robert Schrepfer sold on 3/28, 3/31 1589 shares at an avg of 39.25. Then sold again on 04/06 and 04/07 1062 shares at 43.57.
James Marken sold on 04/06, 04/07 481 shares at an avg of 43.57
CT orders placed: 04/02, 04/02, 04/14
The sells are pretty minimal given what they retain. Coincidental their averages are all the exact same save Stephen Carey?
Someone may have gotten out last minute, but we've been down 3-5% on no news, so still not sure what to make of this. If the company was collapsing, why now? Why not last year or the years prior? Even shortly after merging the company--why not then? I suspect it may be a contingency to something bigger at play. Short interest is the lowest its ever been. A lot of institutions are holding this stock and it'll be interesting to see what they're holding after the dust settles a bit. I suspect a buyout is imminent.
GLTA
-RG
P.S.
Seven Form 4's made today were shares issued to the directors.
P.P.S. The 8K:
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On April 14, 2020, ANI Pharmaceuticals, Inc. (the “Company”) announced that Arthur S. Przybyl will depart as President and Chief Executive Officer on May 10, 2020. Mr. Przybyl’s departure will constitute a termination without good cause under his employment agreement, which agreement has previously been disclosed, and he will receive separation payments and benefits under his employment agreement in respect of a termination without good cause.
The Company’s Board of Directors has retained an executive search firm to lead the search for a new President and Chief Executive Officer.
A copy of the Company’s press release announcing the event described above is furnished herewith as Exhibit 99.1.
Nail on the head. Doesn't make any sense, but there's a list of things that could be driving it, some good (directive growth with new leadership) some bad (poor consistent performance, scandal) and some neutral- retirement?
RG
Seriously fantastic find!
I'd say reach out to Dr. Werner too but that may be bordering harassment.
My only pessimistic view would be it remains in the "present" status only bc the study hasn't formally concluded or a paper is pending etc. Remember it's a CV so it'll be pretty loose with interpretation and written to favor him personally- more open studies equates to more collaborations/networking/contribution for someone seeking his talent.
I still think it's fantastic sleuthing and my optimistic side is breathing a sigh of relief.
-RG
OT: AMRN got hit pretty hard today- another positive for being in generics given the direction pharma is heading. Hopefully those that invested got out after it popped a few months back.
RG
agreed. I've emailed several times over the past few years but of the one or two responses I've gotten back, they basically refer you to their website and past corporate presentations (nothing specific, they literally told me to review their uploaded presentations for the answers to my questions, and if I can't find my answers, they can't answer them). I asked about libigel at that time too, same response. It's infuriating to be an investor and addressed in that manner, but I'm sure it's an employee's approach to IR and not their corporate philosophy as Art had much better tact than that.
Very curious how JTFM's email will play out.
RG
Still a bit frustrated, we were here a few days ago without news, with news we're back- that treading water feeling with not a dramatic amount of volume. Curious if news wasn't announced where'd the PPS fall at close today? Beggars can't be choosers, but we really need higher volume to get this stock back up. Hopefully more coverage will follow this great news.
RG
In the wake of a collapsing society, lets remember civility defines our humanity.
To get back on point- short interest has dropped- I doubt it's going to rise any time soon.
The same games seem to be played with the charts- drop at the start with resolution at closing.
I still believe generics are an important sector given the social trends of moving towards universal health care. Trade name pharma will be hit the hardest- generics will benefit from their fall out.
Everyone is down, not just us.
Insiders are not selling at this point.
Institutions are equally losing on this investment- let's see whether they're buying or selling. Remember, Blackrock increased their stake in the company not too long ago. Also remembering that short interest is really low.
I remember a while back someone mentioned, "higher highs can result in lower low's". The virus won't be around forever, this isn't the new normal, give it time, it'll climb back up as quickly as it went down- look at the past charts- look at the low's of the year, then see how quickly it rose to the high's.
GLTA
-RG