Reed Research
Biotech, small-cap, long/short equity, special situations

The Long-Term Risks About Ocera Therapeutics

Introduction

Ocera Therapeutics (NASDAQ:OCRX) is a company with one main value driver, OCR002. Financially, the company is now sitting on $47.2 M and will be spending $30M in the 2014 financial year. It has about one year in cash. Last year, it spent $3.5M in R&D and these costs are set to increase as it ramps up the Phase 2 trials for OCR002. According to the latest 8-K, the only significant revenue source for 2013 was an executed agreement to grant license to its IP rights, related to its Macrocyclic Template Chemistry (MATCH) discovery platform in exchange for $4M.

There are many challenges Ocera must overcome include positioning itself to fend off fierce competition in its target...

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