Biotech Values

[Live42Day]

CRTX appears to be extremely undervalued here @ 2.57.

They recently received FDA approval for a dosage change for their asthma treatment Zyflo. Zyflo is the only Leukotriene Synthesis Inhibitor on the market for asthmatics and patients with bronchitis and chronic obstructive pulmonary disease.

This is in addition to CRTX's respiratory treatment drug Performist which was approved by the FDA in May.

Cowen & Co. analyst Ian Sanderson said Zyflo CR should improve sales of the original form of Zyflo. He predicted the franchise will bring the company $125 million in revenue in 2011. He reiterated an "Outperform" rating on the stock.

ZACKS: rated buy with price target of $6;
We estimate the market for asthma products should exceed $10 billion in 2008. We believe that Zileuton can eventually gain 2% prescription market share, putting peak sales around the $200 -250 million range.

In 2006, Critical (CRTX) reported $13.1 million in revenue.

The FDA approval announcement for Zyflo sent CRTX trading as high as $4.75 ON 3/31 only to retrace back to it's current level @ 2.57.

In addition, CRTX signed a licensing deal with Dey, L.P., an affiliate of Merck KGaA, Darmstadt, Germany to market these new drugs.

Earnings are improving for CRTX and they have $46M in cash on hand ($1.079/book value per share).

Current MC is $111M. Seems real cheap for a bio with 2 drugs already approved and being actively marketed through a non-dilutive licensing agreement with the likes of Merck KGaA.

Also in the pipeline for CRTX:

HMGB-1: Critical Therapeutics is working in collaboration with MedImmune to identify small molecules and
antibodies that target the High Mobility Group Box Protein 1 (HMGB-1) receptor. HMGB-1 is a mediator agent
that plays an important role in inflammatory response. Blocking the HMGB-1 receptor may prevent tissue
damage during inflammation. Critical Therapeutics published a new preclinical research report in the May 2007 issue
of Nature Immunology.

Alpha-7: The nicotinic alpha-7 receptor also plays an important role in inflammatory response. The receptor
binds the neurotransmitter acetylcholine. Critical Therapeutics in-licensed a number of targets to alpha-7,
hoping to identify one agent that may have commercial viability for inflammatory diseases such as rheumatoid
arthritis or Crohn s disease. The company is completing certain preclinical work in this alpha-7 program. The
company has selected two exploratory development candidates and is currently conducting non-GLP (Good
Laboratory Practice) toxicology studies before identifying a lead candidate for development

I think that CRTX is extremely undervalued down here @ 2.57 and should be trading in the $4 - $5 range minimum.

Any thoughts on this one? tia