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Stemline Therapeutics Still Has The 'Big Mo'


  • Stemline Therapeutics bucked the downward tilt of the market late in the week and was up nearly 15% in trading Friday.
  • Q2 results show the company's recently approved compound ELZONRIS is ramping up much faster than expected.
  • We examine the key highlights of the quarter and what is on the horizon for Stemline in the paragraphs below.
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"Arguing with anonymous strangers on the Internet is a sucker's game because they almost always turn out to be-or to be indistinguishable from-self-righteous sixteen-year-olds possessing infinite amounts of free time." - Neal Stephenson, Cryptonomicon

Investor sentiment and the overall market turned south in a big way after Thursday afternoon's announcement that additional tariffs on Chinese imports are on the way. Equities spent the rest of Thursday and all of Friday largely down across the board, with the energy sector taking one of the hardest hits late in the week on plunging energy prices.

One small-cap stock that held up well and even advanced nicely despite the negative headwinds in the market was Stemline Therapeutics (NASDAQ:STML). This holding in the Busted IPO Forum model portfolio posted outstanding Q2 results Friday morning and was rewarded Friday as its shares rallied just under 15% in a bearish market. In today's article, we revisit this promising "Tier 3" biotech concern and looks at the highlights of its second-quarter results.

Company Overview

Stemline Therapeutics is a New York based biotech concern. The company is focused on developing novel oncology therapeutics. The company has one approved product called ELZONRIS and its other clinical candidates include: SL-701, SL-801, SL-901, and SL-1001. Stemline Therapeutics currently has a market capitalization of roughly $600 million and trades for just under $15.00 a share after Friday's rally.

Second Quarter Earnings Highlights

The company posted a loss of 42 cents a share, 14 cents a share above the consensus. More importantly, Stemline delivered $13 million in revenue from ELZONRIS which had its commercial launch in January of this year. This was approximately double expectations and a 157% increase from the first quarter. This compound was approved to treat blastic plasmacytoid dendritic cell neoplasm (BPDCN) cancer late in 2018.

R&D costs fell $300,000 from

Author's note: I present and update my best small-cap Busted IPO stock ideas only to subscribers of my exclusive marketplace, The Busted IPO Forum. Join our community today by clicking on our logo below!  As of 08/02/2019, our model portfolio has generated an overall return of 30.40% since its launch in the summer of 2017.  A similar amount allocated to the Russell has returned just 1.44%.

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Analyst’s Disclosure: I am/we are long STML. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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