I have previously written about ALTU when the stock was trading around $18 back in November 2006 (link).
Since then Altus has signed a development and commercialization agreement with Genentech (DNA) for ALTU-238, a longer acting version of human growth hormone currently in phase II clinical trials with a $2 billion market. On May 10th, Altus announced initiation of a phase III clinical trial for ALTU-135, an enzyme replacement therapy for cystic fibrosis. To fund this large and expensive trial, Altus had a stock offering earlier this year which raised about $89 million dollars.
Altus' pipeline contains other promising pre-clinical products including ALTU -237 (oral) for kidney stones and ALTU-236 (oral) for phenyloketonurea. Altus has a high probability of success mostly because its first two products are improved versions of existing products, lowering the degree of difficulty because they do not have the burden of a proof-of-principal that a novel medicine must overcome.
For some strange reason, Altus' financials do not reflect the new money raised through public offering. The correct balance sheet cash should be closer to $200 million. The company is undervalued with a market cap of only $413 million at $13/share with about $6/share in cash, a partnership with Genentech and two products in or near phase III. I expect the stock to rise to $20-25 by year end as more clinical trial data becomes available or a new phase III is started
Disclaimer: The author has an investment position in ALTU.