NEW YORK, NY / ACCESSWIRE / March 15, 2017 / The development of a drug and receiving a passing grade from the FDA is not always enough to keep a company financially solvent. Investors are required to be willing to inject a large dose of hope into their choice of biotech stocks. According to BIO, a major trade association that represents biotech companies, "The overall likelihood of approval (LOA) from Phase I for all developmental candidates was 9.6%, and 11.9% for all indications outside of Oncology." Basically, there is a 1 in 10 chance your investment will pay off.
RDI Initiates Coverage:
Galectin Therapeutics Inc. https://ub.rdinvesting.com/news/?ticker=GALT
Aratana Therapeutics Inc. https://ub.rdinvesting.com/news/?ticker=PETX
A positive result from a small scale study on Galectin Therapeutics GR-MD-02 drug caused a 3.3 percent increase in the company's stock price, up 6 cents to $1.87 a share. The GR-MD-02 drug is designed to target the galectin-3 protein which plays a critical role in the progression of fatty liver disease and fibrosis. The small bump in price is a continuation of a late January rally in the stock as investors are beginning to see the stock in a new light after its initial Phase 2 results caused to the stock to drop dramatically last November. The latest results show the drug to be safe, with one patient responding very positively to the tests. It currently has a price to book (P/B) ratio of 14.96.
Access RDI's Galectin Therapeutics Research Report at: https://ub.rdinvesting.com/news/?ticker=GALT
Aratana Therapeutics reported a net loss of $23.3 million for the 4th quarter ending December 31, 2016. The loss, combined with the announcement that its revenues were $292,000, resulted in the price of its stock declining $1.32 to $5.63 a share in a couple of days. The 23+ percent drop is largely in part due to the delay of its Entyce drug for oral appetite simulation in dogs, now scheduled to be available for deliver in late 2017. Earlier in February class action lawsuit has been initiated against the company for misleading statements about Entyce regarding manufacturing contracts and timeline for a commercial launch. The company says it has $88 million in cash, sufficient to keep its operations going until the first quarter of 2018. The $292,000 revenue fell far short of Wall Street analyst expectations of $923,000. Aratana is a company that develops drugs for cats and dogs.
Access RDI's Aratana Therapeutics Research Report at: https://ub.rdinvesting.com/news/?ticker=PETX
Our Actionable Research on Galectin Therapeutics Inc. (NASDAQ: GALT) Aratana Therapeutics Inc. (NASDAQ: PETX) can be downloaded free of charge at Research Driven Investing.