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Bearish On ACST, Price Target $<1

|Includes:Acasti Pharma, Inc. (ACST), NEPT

Phase II open label data similar to what was presented in the past, do we really have any new news here?

Investors should be cautioned and careful on this issue:

  • I predict the phase 3 will not reproduce the seemingly LDL favorable results of phase 2, while it will continue to present the unfavorable side effects of raising HDL--poorly designed and controlled study by a company with no experience in Rx
  • The material cannot be commercialized for FDA approved Rx. Sure, they can sign all the contracts they want to produce a batch of trial material but Krill is a volatile substance refined not like fish oil. It cannot be standardized and has tiny levels of EPA/DHA vs. fish oil. It's hard to manufacturer and hard to keep fresh. Their PR on manufacturer is to try and put a smokescreen up to potential investors--the material is not viable as Rx now, and may never get there.
  • 2-4g dose of Krill will make you have a horrendous day. It has a noticeable gastrointestinal impact at those levels
  • Parent company is pretty bad shape, no US patents holding up and their base nutritional business is all but diminished to a trickle.

PT ACST $.70; PT NEPT $2.25

Stocks: ACST, NEPT