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Wall Street Teacher (a pseudonym) worked on Wall Street for several years in the fixed income area and now teaches and writes on financial topics (primarily regulation and markets). Current interests include the psychology of financial markets, the origins of chemistry/physics, synthetic... More
  • Cormedix-An Interestng Speculation  8 comments
    Apr 15, 2011 7:37 AM | about stocks: CRMD
    Cormedix (CRMD)

    CRMD is a development stage company based in NJ. Primary interest-kidney related treatments. Nibbling on this one but still researching IP on Neurtolin. There is a competing product already being sold in Europe (Taurolock) that seems strikingly similar in both formulation and mechanism of action. CRMD is applying for mark status (similar to US FDA approval process but far less rigorous ). Early research seems to indicate that CRMD should have rights to the technology so I am unsure as to Taurolock's legal status. Still researching this issue as this is a critical valuation determiner given CRMD's plan to launch their product in late 2011.

    Other product (deferiprone) has recently released some mid-stage results.

    Pros: Shockingly low marketcap given market opportunity
    Pros: Lead product somewhat de-risked give current usage
    Cons: Potential legal issues surrounding IP(Taurolock status)
    Cons: limited runway (cash burn low but Q4 2011 or Q1 2012 window)

    Please note, the stock (CRMD) and wts are both quite illiquid since shares are held in relatively few hands.

    Disclosure

    Long ---ZIOP, CRMD, DF

    Short --SLV(OUCH!) , several ETFs
    Themes: biotech, microcap, long ideas, speculation, kidney, dialysis Stocks: CRMD
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This post has 8 comments:

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  •  
    very happy to see your interest in CRMD. I think the "Pros" you mention are spot on - especially extremely low market cap given the opportunity. I am fairly certain the "Cons" can be addressed to your satisfaction, and i will follow this with another, fuller explanation.
    biggest frustration for potential buyers, as you said, is lack of available shares -
    Full Disclosure - My company represents Cormedix, and I am a shareholder, so I have a natural bias, but facts are facts.
    I appreciate your views and will be back to you with some additional thoughts
    Thank you
    22 Apr 2011, 07:10 AM Reply Like
  •  
    Jeff-

    I am most interested in trying to determine the relative IP claims re: the catheter block drugs.
    24 Apr 2011, 04:17 AM Reply Like
  •  
    Update: CRMD's has updated their CE Mark status (see10Q) on catheter product . Process has been delayed and they are now shooting for first half of next year (prior estimates were looking for launch late this year). Not much detail as to the why. Disappointing event which will likely put the shares under pressure as the stock is very, very thinly traded.

    This is a tough one. Very, very cheap valuation but dilution now much more likely given cash position. One bright spot: CIN product seems to be progressing as planned .
    14 May 2011, 07:21 AM Reply Like
  •  
    Looks like little CRMD remains under pressure. 50K shares sold off last week driving the issue down 13%. Aside from that trade, virtually no volume to speak of on a day to day basis.
    26 Jul 2011, 10:22 AM Reply Like
  •  
    I must admit my interesting speculation has been a black hole. My worst investment of the year. The company has given back rights to one drug and is desperately trying to conserve cash. A couple of grants(if they come thru) may keep the lights on for several months. The only faint hope here is an outside shot at Mark approval (European approval process) on CRMD's catheter drug. I bought more recently but most likely this one going to be added to my wall paper collection.

    Mark approval and subsequent distribution deal(s) probably makes this a $2 stock since the company has a very low cost structure and would essentially become a simple royalty collecter with most of the dollars falling to the bottom line. That said, management has no record success on either the scientific or business fronts. Any delay or outright rejection by the European regulators puts this at ZERO.

    Bottom Line: CRMD is an interesting Lottery ticket at this point. The potential is here for a multi-bagger based on Mark approval but it is just as likely(if not greater chance) we see a chapter 7 filing within the year.

    Long CRMD, ZIOP, TC
    16 Dec 2011, 01:38 PM Reply Like
  •  
    Phoenix rising. A few months ago I thought this story was over. Maybe, just maybe they have a shoot. Mark approval outcome slated for EOY. Dr. Tony Pfaffle can be thanked for pulling this plane out of a nose dive. Will he be successful, no idea. Do they have a shot @ mark approval--most definitely.


    The other interesting issue here is IP . TauroPharm (German competitor) has a very similar catheter lock product on the market. My gut says they may have infringed a wee bit (understatement) on CRMD's patents. We'll see if this figures into the equation down the road.

    Long ZIOP, CRMD, HALO
    15 Oct 2012, 01:28 PM Reply Like
  •  
    Still waiting on Mark approval. Company had a court date in Europe recently. Relatively positive outcome vs. Swiss on IP issue. Hopefully company hits guidance re: Mark approval (Q4 2012 or Q1 2013).


    If that hurdle is crossed this gets very interesting. Tauropharm (German company) is currently a monopoly provider in EU of a very similar product(hmmmmm). Catheter lock market size is likely $50MM or so. I imagine the feathers may begin to fly once there are two combatants in the arena.


    Long CRMD
    7 Dec 2012, 01:18 PM Reply Like
  •  
    CRMD has raised some funds and been granted an extension form NYSE-AMEX. Management PR indicates that Mark Approval decision should come Q1. I am betting the new management team FINALLY executes on this little company's promising IP.

    Long Here
    13 Feb, 05:57 PM Reply Like
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  • I'm betting Europe works out. That's bad for the $ but good for gold. I guess the Germans rule the continent without having to fire a shot!
    Jun 4, 2012
  • ZIOP remains under pressure with the rest of the biotech space. Nice hire a few weeks back.
    Jul 30, 2011
  • Well, I guess we will soon see if the speculation concerning a CLDA funds move to ZIOP is correct. Deal is scheduled to close early April.
    Mar 31, 2011
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