Keryx Biopharmaceuticals Inc fka KERX

[califax]

Keryx (KERX) Conference Call Rundown

June 10th, 2010
http://www.gekkowire.com/?p=3784

So I took some time to listen to the two Keryx Investors Presentations held yesterday and today. I’ll give investors a brief rundown on the important information. Since most investors in the company are aware that they have 2 drugs in 3 Phase III SPA trials, I will stay away from drug data as I have already covered Perifosine in depth during this year’s ASCO.

The most important information that I took away from the conference calls was that the company seems to be more than willing to partner up to develop and commercialize the drug. The company was noted as saying that there was a “robust” interest in the two compounds Perifosine and Zerenex. I’m going to add in my two cents here, if the company is unable to find a partner until they finish Phase III trials, then I would much rather have them commercialize the drugs themselves. The big risk is in getting the drug through the Phase III trials.

The FDA is not so much of a risk if your data is strong, compelling, and establishes safety and efficacy. I have seen several companies partner up after passing Phase III trials (Protalix is one htat comes to mind), only to watch shareholders get jimmied out of the massive returns like Dendreon has shown. A little dilution hurts a lot less than having all your revenues taken away so you can receive a measley royalty rate and milestone payment. So my take on this is the following: if Keryx cannot partner up during the Phase III trials, and the drug passes the trial, then I would want them to go at it alone. the company also noted that they should be seeing some data from the colorectal trial sometime in the 2nd half of 2011.

Keryx also reiterated that they have plenty of cash to run the clinical trials. The company said that they were sitting on about $32 million at the current moment and are burning about $1.5 million per month and expect to burn about $18 million this year. They also noted that they should receive a milestone payment and an options exercise somewhere in the amount of $15-17 million later this year which would leave them with about $47 million in cash.