Pain Therapeutics (PTIE) positioned to cash in on the pain market?

20 Apr

About Pain Therapeutics, Inc.

  • Pain Therapeutics (PTIE) is a biopharmaceutical company that develops novel drugs. In addition to REMOXY, a unique, abuse-resistant controlled-release oxycodone, the Company has three drug candidates in clinical programs, including a novel radio-labeled monoclonal antibody to treat metastatic melanoma, as well as PTI-202 and PTI-721. Pain Therapeutics is also working on a new treatment for patients with hemophilia.

Product pipeline

  • The product we are focusing in on is REMOXY.  REMOXY is an exciting product, that is set to take on the $3B pain killer market for Oxycodone; so Blockbuster potential.  It is a reformulation, but is an abuse deterrent drug and its efficacy is good.  REMOXY comes in gel tab form that when crushed retains its form.  It also does not absorb in alcohol or water like the current drugs on the market do.  This allows for less abuse by addicts.
  • History of REMOXY
    • June 2008 filed NDA
    • Aug 2008 was given priority review
    • Nov 2008 panel was in favor
    • Dec 2008 FDA issued a CRL asking for no new trials, no change in formulation, but for stability data
    • Dec 2010 PTIE filed stability data
    • Jan 2011 received acceptance for NDA with PDUFA of6/23/11
  • Company will receive $15M upon approval from partner Pfizer (formerly King Pharmaceutical) and a 15% royalty on net sales for the first $1B of REMOXY plus 2 other abuse-resistant pain killers currently in clinical trials, and a 20% royalty on net sales > $1B.  PTIE gets a 10% royalty on international sales.

Financial information

From 10K filed2/3/11

  • At12/31/10had approx $ 91M in cash, and CFO expects less than $ 5M in cash expenditures in 2011 (does not include potential 15M milestone if REMOXY is approved)
  • Total assets $ 99M

From Yahoo! quote summary4/20/11

  • Market cap of $ 377M
  • Avg analyst target $12
  • P/E n/a
  • Shares o/s 43M, float 28.5M

 Stock data and trading plan

 

A great opportunity to buy on the dip here, PTIE is currently oversold and within the 50%-38% retracement zone so it is a screaming buy.  Bought more today and will add if it falls under $ 8.50 but I doubt it will.  I am very excited about playing this and think they will get an approval into this $ 3B market, it is a huge market, and they have a shot at being the first abuse deterrent Oxycodone drug on the market.  Run don’t walk to your broker – buy now and hold until it goes over $10.  Will post a comment if I am holding some through approval.

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https://pokerexpress.wordpress.com/category/biotech-momentum/

Disclosure:  currently long PTIE

Disclaimer: I have never ever been paid or compensated by anyone for any stock I trade or discuss. None of the information posted on this site is to be construed as financial or investment advice. This information is not to be construed as an offer to buy or sell any security mentioned on this blog. The creator of this blog is not a licensed broker or financial advisor of any kind. The information on this site is gathered from sources available to the public. As consideration in using this blog, all users agree, understand, and acknowledge the creator of the blog is not liable or responsible for the accuracy or use of the information provided on this site and agree to indemnify and hold the creator of this blog harmless from any liability resulting from the accuracy or inaccuracy of the information and from use of the information on this board. All of the information that I post on this blog is public information available to anyone! You are responsible for your own trades and not the creator of this blog.  Please be aware that investing in securities carries the risk of losing some or all of your money.

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2 Responses to “Pain Therapeutics (PTIE) positioned to cash in on the pain market?”

  1. pokerexpress June 22, 2011 at 10:36 pm #

    I am holding through approval tomorrow expecting an approval of Remoxy. This sell off was overdone so I would expect to sell around 10-10.50 if approved. GLT

  2. pokerexpress June 26, 2011 at 10:50 pm #

    Got crushed on half holdings on the CRL. In retrospect, if there are any doubts, it lowers your risk/reward. In this case, once I had heard the Pfizer conf call issue a manufacturing warning I should have taken my profits and put them else where. In the future I will definitely heed all warnings.

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