Cemp just announced a merger that they value a $10 a share and they're trading under three, which is an amount less than the cash. That not only tells you what the market thinks of Cemp but it also tells you what the market thinks the chances of Cemp's success in getting this drug approved is. Friend was just on a call with VP and was told that all investment bankers think this M&A is the best way to proceed. What is discouraging is even at trading at par or below cash. I bet Cemp was shopped to many big Pharma and came up with the goose egg. Considering this drug would be a first in a new class of antibiotics that is shocking.
There is absolutely no doubt the drug is effective. There's no doubt that the past CEO not only bundled the FDA but also bungled what she stated on investor calls.
If CEMP gets forgets this approved it's a billion-dollar drug no doubt about it but now we're at least a year or longer away new antibiotic class and I hope Santa gets it through but the fact is they really screwed up with the FDA. As far as sent and this new entity being a second line they will have to partner with a very big company.
As far as current M&A the merge partner had approval since June on a product and it has not been marketed, not very encouraging.
They need a CEO. CEMP management needs to go and as you stated, they have loaded the boat with options for themselves.
The only way this deal will even get done is if they do a much better presentation at Proxy time. So if they value the new company at $10.00 they need to convince the market to get this above $6.00 or $7.00 IMO. Otherwise why vote for it.
News 
Market Data 
Discover 
