In times of crisis many companies are looking for opportunities in the market. Multinationals are seeking to expand their businesses and promote their balance sheets. The low volume of business in the stock markets as well as the volatility offer attractive rates and undervalued companies at current prices.
In this article, I will analyze three companies from different sectors that offer an investment opportunity. Their products can be very attractive for any company that wants to position itself in U.S. markets.
1. Cereplast (CERP) is engaged in the development and marketing of compostable, renewable, ecologically substitutes for petroleum-based plastics. The company was founded in 1996.
Cereplast product portfolio currently consists of two top quality range of products:
- Cereplast compostable resins are made of renewable resources and are ecologically sound substitutes for fossil fuel-based plastics, replacing nearly 100% of the petroleum-based additives used in traditional plastics.
- Cereplast sustainable resins replace up to 90% of the petroleum content used in traditional plastics.
2. Anthera Pharmaceuticals (ANTH) is a pharmaceutical company focused on the development and marketing of products that treat serious diseases associated with inflammation, including cardiovascular and autoimmune diseases.
Anthera's product portfolio currently consists on a potential product in Phase IIb:
- Blisibimod targets elevated levels of B-cell activating factor (BAFF), which has been associated with a variety of B-cell mediated autoimmune diseases, including systemic lupus erythematosus (SLE), rheumatoid arthritis, multiple sclerosis, Sjögren's Syndrome, Graves' Disease and others.
Based on positive results in the Phase Ia and Ib clinical studies, as well as recent validation in multiple late-stage clinical studies of the role of BAFF in lupus, we have initiated the PEARL-SC, the Phase IIb study of Blisibimod, for the treatment of Systemic Lupus Erythematosus. PEARL-SC is a randomized, double-blind, placebo-controlled, Phase IIb clinical study that will enroll approximately 540 patients in up to 90 centers in 12 countries. Patients will be randomized into three active treatment arms and one placebo treatment arm for a minimum of 24 weeks. the primary endpoint of the PEARL-SC study is clinical improvement at 24 weeks in the SLE responder index, a recently recognized FDA endpoint for demonstrating clinical efficacy.
Companies such as Eli Lilly & Co. (LLY) and Pfizer (PFE) would be interested in acquiring the rights to marketing Blisibimod's studies after FDA has not approved any drug for this treatment for 52 years.
3. EnergySolutions (ES) is an international company located in Salt Lake City. As a worldwide leader in the safe recycling, processing and disposal of nuclear material, they provide innovations and technologies to the U.S. Department of Energy, commercial utilities, medical and research facilities. In the United Kingdom, they operate and provide nuclear decommissioning services for 22 nuclear power plants.
The company provides its services through two operating groups: the Government Group and the Global Commercial Group. The Global Commercial Group includes three businesses divisions: Commercial Services, Logistics, Processing and Disposal (LP&D) and International.
Cereplast, Anthera Pharmaceutical and EnergySolutions offer opportunities for long-term investments because they are undervalued companies. Their products are innovative and offer an excellent possibility of acquisition to multinationals.
Disclosure: I am long CERP.