HEPH
Is about to present a very good value on Monday.
On December 9, the US DHHS released a final request for proposal (RFP) requesting 20,000--yes, that's right, 20,000--doses of an unspecified radioprotectant for the treatment of ARS. The RFP remains tailor-made for Neulasta, even down to the level of the shelf life. It's almost like they were reading the Neulasta PI while writing the RFP.
My question: what company is going to step up to the plate to conduct the appropriate trials, if they haven't already done so, for a 20,000-dose contract? Even Amgen would have been unlikely to waste the time or effort on testing their agent for a 20,000-dose contract--but of course the government is paying to test Neulasta.
In short, this contract all but specifies Neulasta--a product that, if left unrefrigerated, is useless after 48 hours, requires extensive monitoring during adminstration, and only treats neutropenia.
Therefore, it appears that the government's "effort" to promote the development of practical agents for ARS is DOA. I expect HEPH to fall hard on Monday. I own only a small call position, which I will continue to hold through expiration.
Keep in mind, however, that Neumune has been demonstrated to significantly reduce the number of days with neutropenia and thrombocytopenia in animal models of ARS. So this isn't a typical biotech failure--they have a product that appears to work and meets all of the requirements for the government ARS contract--Bush's incompetent cronies have, however, made what what to my mind is a politically driven decision.
HEPH has ~56 million in cash, at their current burn rate that's about 9 quarters. They have one drug (Neumune) that has been very extensively tested in non-human primate models and phase I safety studies and another in phase II. Buyout? Surely this company is worth a substantial amount to any big pharma that wants to enter the neutropenia/thrombocytopenia space? In the absence of a buyout (and much longer term) Neumune has excellent potential.
AI
