Shares of Stemline Therapeutics (STML) have lost nearly a third of their value since my December update. I have placed the ticker on my list to revisit at some point soon, but here's a comment in our chat that caught my attention after preliminary Q4 earnings were announced and the stock plunged.
Michael Meltzer (aka eyedoc):
My opinion is that STML is a screaming buy under 7. Derailed as Q4 revs are less then Q3 which was considered unimpressive. That said, dealing with the singular first line treatment for BPDCN. Not a common problem, so treatments will come when they do,They have a J code which further compensates doctors if they use Elzonris. I expect Elzonris to prove out in multiple other cancers and is a platform in 1 drug over time. They have $174M cash last I checked and Cantor has an 18 PT. Europe in process of being filed so lots of tailwinds. I think Elzonris and a JAK inhibitor combo in trial now and should do nicely. Lots of data sets in 2020. I doubled down on STML/ Do your own DD. Read Jonathan's articles which I totally agree with.
STML currently trading for cash on hand+next year's estimated revenues
Got about a $350M MC, with $174M in cash. An approved drug that should expand it's indications. Look at presentation and get a feel for what Elzonris does. Should be able to get approval for CMML,myelofibrosis, and mutiple myeloma all with extreme need. Also should get into AML but that is a very crowded field. It is a CD123 targeting med and should have much utility.
Taking a brief look here, the main catalyst later this year appears to be data readouts in CMML, MF, and AML indications (especially in patient subsets with high CD123). This will likely come at ASH in December.
Additionally, one would think that $43 million in first year sales for launch in an orphan indication is not bad at all for a company with market capitalization of just $300 million and half that number in cash. Couple that with the fact that EU launch could come in Q3 this year if Elzonris is approved there.
Given the above factors, at first glance this one appears to be quite the bargain to scoop up here. As stated prior, I've put it back in my queue to revisit soon.
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