Five Reason Repros Therapeutics Is Hitting 52-Week Highs

Five reasons Repros Therapeutics (RPRX) is hitting 52-week highs:

1. Rare among biotechs, its funding needs have been met. Last year, Repros agreed with Efficacy Capital to allow the fund to buy up to 40 percent of the outstanding shares. Despite the credit crunch, Efficacy infused $15 million to the firm and agreed to buy more should RPRX need it. The agreement is here.

2. Short interest remains over 660,000 shares, down from over 900,000 a month ago. True float is only 8 or 9 million shares. While shorting cash strapped biotechs going into financings was a lucrative strategy last year, the shorts may have been caught. Data on shorts is available here.

3. With a market cap flirting with $200 million, critical mass of the firm is reaching a point where it becomes of interest to healthcare and other mutual funds.

4. Short time frame: RPRX expects to file a New Drug Application for one use of Proellex this year and two other NDA’s next year. The pipeline is here.

5. Possible blockbuster drug: Proellex appears to be of value in treating uterine fibroids, endometriosis, and related anemias. These are large markets and there is no currently existing pharma therapy without serious side effects. Androxal, which appears to be useful in treating low testosterone in men, could be valuable as well.

Disclosure: Author holds a long position in RPRX

Comments

[stox2buy:]

Can any one suggest a few potential 10 baggers other than Thermogenesis (KOOL)?

Thanks in advance.

Jan 10 01:30 PM

[adventurerneil:]

Dear Elliot Eisenberg,

Let me be the first to offer my condolences on your long position in RPRX. The CEO, Podolski, looks to be up to the same garbage as he was in the 90s:

www.fool.com/dtrouble/...
www.houstonpress.com/1.../

If SeekingAlpha mangles those URLs, as it likes to do, then just google "Podolski Zonagen" and "Podolski bad science" for the articles.

Good luck - hope you got out recently, or choose to soon.

Disclosure: short on RPRX and other bad companies.

Jan 15 10:23 AM

[LT Bear Broker:]

Eisenberg has always hit the wrong button, then blames others for his lack of understanding the markets. A bunch of us read what he writes because we all need a good laugh in these tough times.

Feb 28 09:51 AM