Zacks=Our valuation currently stands at $1.50. CERC
CERC: Sells CERC-501 for $25 Million; Company Currently Trading Below Cash Value
Zacks Small Cap Research By David Bautz, PhD
Conclusion and Valuation
Following disappointing clinical results for both CERC-301 and CERC-501, the company is looking to “start anew” with a large amount of cash, a renewed focus on the pipeline, and the hiring of a new CEO. We are looking forward to learning more about the use of CERC-301 in orphan neurological indications, and what those indications might be. We anticipate the company moving ahead with an investigational new drug (IND) application for CERC-611 to begin development as an adjunctive treatment for seizures in patients with epilepsy, and additional details about the clinical path forward after that occurs. We anticipate CERC-406 is at least a couple of years away from the clinic as it is still early in preclinical development.
We estimate Cerecor currently has approximately $28 million in cash and a market cap of approximately $15 million. We see no reason the stock should be trading below cash, and CERC-611 has some intriguing preclinical data to support its development as a treatment for seizures. Our valuation currently stands at $1.50.
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