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Ramsay Schrum
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VP Sales and International Operations Apparel and Garment Manufacturing Executive Education course at Harvard Business School 2010 ZLCS, TLAB, SIMG, CIM, BPAX, ASTX TRGT trading below cash right now.... nice buy opp here $4.30
  • Zalicus Is Under The Radar; Potentially Developing A Game Changer 1 comment
    Feb 28, 2013 1:34 AM | about stocks: COV, NVS, SNY, EPRS

    Zalicus (ZLCS) has been trading below the radar for the past few months. I believe it is truly undervalued here at the current PPS of .65 cents and ready to explode.

    Zalicus is a discovery bio pharmaceutical company that focuses on novel pain treatments. Currently there are 126 million shares on the float trading at a PPS of .65 cents with a market cap of around 80 million. Zalicus is currently working with big pharmas like Covidien (NYSE:COV), Sanofi (NYSE:SNY), and Novartis (NYSE:NVS) which is not a bad portfolio for a 80 million dollar biotech.

    There are 3 reasons why I am so bullish here at this PPS.

    1) The potential for a P3 start any moment by Sanofi on Prednisporin FOV1101 which will trigger a 3 million dollar milestone payment to Zalicus.

    2) Z944 a T-Type Calcium Channel Blocker is due for an update on Phase I results and potential Phase II start before the end of Q1

    3) The Potent Z160 an N-Type Calcium Channel Blocker has attracted huge attention from the big pharmas that are drooling to get there hands on data from the 2 PII trials. Z160 prior formulation was originally partnered in a deal with Merck for over 450 million.

    You must ask yourself at this current PPS with Fov1101 aside, leading into any data for Z160 or Z944 will the PPS rise with anticipation from the current share price of .65 cents. That question answers itself and it was shown by the previous run up going into Synavive data reaching $1.40 before negative data was released.

    Zalicus CFO Justin Rentz stated in the BIO CEO & Investor Conference on February 12th that they were looking to advance Z944 into further development after meeting with key consultants to reach the most effective path forward. That tells me that the PI data was positive and all that awaits is a conformation PR that could come at any moment.

    Of course there is the big boy drug Z160 that is currently in two Phase II trials for Lumbosacral Radiculopathy and Postherpetic Neuralgia. What does not get touched on very often is the fact that this drug will be the first pain drug that is orally administered without the side effects of an opioid. The FDA in recent years has made a huge push to regulate the amount of scrips written on the big drugs like Hydrocodone and other opioids. The growing problem in the US is becoming an epidemic with people of all ages. Z160 could set the world standard for new pain therapy and save millions of lives and families that are effected by opioid abuse.

    This possibility alone is worth more than .65 cents and I see this as a STRONG BUY here going into the coming months with nothing but upside from here on out.

    Disclosure: I am long ZLCS. 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.

    Themes: long-ideas Stocks: COV, NVS, SNY, EPRS
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  • wildbull
    , contributor
    Comments (10) | Send Message
     
    Thank you very much for the article. Z160 is the future of the pain drug. During Merck trial Z160 showed analgic effect at 400ng/ml. Now with increased bioavailability of 6 fold, this tial is going to excel!
    28 Feb 2013, 09:46 AM Reply Like
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