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  • Repros Therapeutics: Circling the Drain to Zero [View article]
    >>Second look: Almost at $6.

    That's after a 1:4 reverse split.

    The November 2.5 options play I suggested was quite profitable, although the company itself seems to have many more than nine lives.
    May 11, 2011. 11:30 PM | Likes Like |Link to Comment
  • A Three-Way Strategy on Repros Therapeutics [View article]
    The company is basically insolvent. Their lead drug is dead. Androxal is an early-stage compound with a limited potential market and high safety barriers. To quote from the company's own SEC filing:

    >>“Given that there is an acceptable treatment regimen for men with low testosterone, there is significant uncertainty as to whether or not an additional approach such as Androxal® would be approved by the FDA or accepted in the market.”<<

    There is also massive dilution on the horizon - the company has announced that they will seek shareholder approval to increase the number of authorized common shares from 30,000,000 shares to 75,000,000.

    From their proxy filed recently:

    >>We recently announced that our currently available cash and cash equivalents is not adequate to meet our accounts payable and accrued expenses. Therefore, we are currently in negotiations with our vendors to attempt to reduce amounts owed to them and to issue such vendors registered and unregistered shares of our common stock in lieu of a portion of such amounts owed. Additionally, based on our existing and projected accounts payable and commitments, we believe we do not have sufficient cash to continue normal operations and need to raise additional capital in order to continue our business activity for the near term.
    As stated in our most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on August 17, 2009 (“Latest Form 10-Q”), we had cash and cash equivalents of approximately $2.7 million, and accounts payable and accrued expenses significantly higher than $7.5 million,
    as of August 14, 2009. Furthermore, as of September 30, 2009, we had approximately $2.5 million in cash and cash equivalents. Even if all of our creditors were to accept shares of our common stock in settlement of our outstanding debts, we would still need to raise additional capital in order to continue our operations beyond the end of the year. We are in discussions with investment bankers regarding the terms of such an equity financing at this time; however, no prediction can be made at this time over whether such financing will be sufficient to enable us to maintain our listing on the Nasdaq Global Market, to maintain our license rights to Proellex® under our Exclusive License Agreement, as amended, with the National Institutes of Health dated April 16, 1999, or provide sufficient funds to allow us to continue our operations. Should we be unable to resolve our outstanding debts with our creditors or raise additional capital in sufficient amounts, we may be forced to file for bankruptcy protection.<<
    Oct 27, 2009. 11:03 AM | Likes Like |Link to Comment
  • Repros Therapeutics: Circling the Drain to Zero [View article]

    On Sep 02 11:12 AM W Buffett wrote:

    > There's really nothing to support the fact that the 12.5 mg dose
    > of Proellex is toxic. If that is viable, the drug is a valuable asset
    > and the company will be purchased or form a partnership with one
    > of the top biotech companies.

    I agree there is no direct evidence to support toxicity of the low dose. But drug-induced liver toxicity is strange - you can give a drug to 10,000 people with no reaction, and then kill the next person you dose. That's exactly what happened with some of the high-profile drug withdrawals and it is what makes the FDA so wary. It's what makes this adverse reaction the kiss of death for any drug treating a non-fatal condition. No big pharma or large biotech will come anywhere near this compound - if they wanted to play in this space they would license Neurocrine's (NBIX) good-looking Elagolix instead.
    Sep 3, 2009. 10:31 AM | 1 Like Like |Link to Comment
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