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I have been investing for past 10 years and my focus is mainly concentrated in healthcare sector. I trade on momentnum on news such as major upcoming topline clinical trial results, FDA approval etc. See Seeking Alpha's policy on anonymous authors.... More
  • Time To Get On Board Before Binary Event 0 comments
    Mar 5, 2013 8:42 AM | about stocks: CBST

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in TSRX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)

    Trius will be expected to announce top-line data from its 2nd Phase III trial of Tedizolid around march 2013.

    Good points to note

    - Had done a public offering on January 2013 so this remove any possible fund raising after top-line data announcement later.

    - Possible partnership if top-line data is positive

    - low market cap which makes it undervalued if top-line data is positive

    - Tedizolid seem to be better than linezolid with lower side effects and toxicity and less likely for patients to be more "resistive" to it

    Bad points to note

    - top-line data fail to meet primary and secondary objectives. Share price will vaporize if so.

    -Tedizolid's main competitor Zyvox's patent will expire May 2015. Pfizer which own Zyvox does has additional patent which will protect it till 2018 and it has reached settlement agreement with Teva. However, it is still not clear how it will affect Tedizolid in the long term but it does provide Trius some time (maybe 2 years) market Tedizolid before generics hit the market.

    Please always do your own due diligence before buying. There are lots of detailed information available online. I wrote so that from time to time, I can refer to my article to see if my arguments are still valid. I think buying in less than $5.40 would be a good price. I expect the price may be significant higher if top-line data is positive.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in TSRX over the next 72 hours.

    Stocks: CBST
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