Zen Money News Issue 036 110812
Hot Penny Stocks – DURECT Corporation (DRRX)
Bob Harper, Managing Editor, The Zenect Wealth Report
On The Radar Report
Between 2001 and 2003 roughly 772,000 individuals were diagnosed with opioid painkiller abuse – from 2007 to 2009 that number increased to 4.4 million.
The US healthcare industry, pharmaceutical producers and the FDA are combating prescription drug abuse by developing delivery systems that incorporate abuse deterrent properties.
Today’s company is on the forefront of this effort, already having developed a number of proprietary delivery methods designed to curtail the abuse potential of modern day painkillers.
Industry Drug Manufacturer
Recent Price $1.00
Market Cap $87.6 m
Shares Outstanding 87.7 m
Average Volume 99,863
Dividend Yield N/A
DURECT Corporation is a pharmaceutical company dedicated to developing proprietary drug delivery technologies ranging from oral gel caps to biodegradable implants. Some of their established platforms include SABER, ORADUR, TRANSDUR, DURIN, and MICRODUR. Most of these drug delivery systems utilize extended release or prolonged release technologies.
These lower dose and sustained release delivery methods have increased in popularity. Thanks in part to wider public awareness of opioid abuse relating to prescription medication.
DURECT’s long term strategy is to build upon their portfolio of proprietary drug delivery platforms. They will continue partnering with other pharmaceutical producers, such as Pfizer (PFE), in order to develop delivery platforms for their products.
DRRX’s most recent quarterly numbers were released on November 5, 2012.
The company reported revenue of $3.8 million in the quarter. Down from last year’s second quarter revenue of $8.1 million. This is a decrease of 52.8%. DURECT Corporation also reported a net loss of approximately $4.8 million… a year-over-year increase from a net loss of $5 million.
As of September 30, 2012, the company reported $6.3 million in cash and no long-term.
KEY METRICS ANALYSIS
Trailing P/E 4.6 x
Price / Sales 1.4 x
Return on Assets 25.9 %
Insider ownership 22.9 %
Short Ratio 0.8 x
Current Ratio 5.1 x
Total Debt To Equity N/A
On August 6 2012 DURECT announced the completion of pre-NDA (new drug application) communications with the United States FDA regarding a new delivery platform, POSIDUR. The company plans to submit their NDA filing in late 2012 or early 2013.
POSIDUR is an investigative post-operative pain relief delivery method. Utilizing DURECT’s patented SABER technology it provides up to three days of pain relief post-surgery.
Pfizer (PFE) Remoxy Announcements
Pfizer and Pain Therapeutics (PTIE) are developing a new painkiller known as Remoxy, which was formulated with DURECT’s ORADUR technology. During Pfizer’s Q3 earnings call on November 1, 2012 they announced additional testing of Remoxy, delaying its approval and release.
James E. Brown – CEO, President and Director
Felix Theeuwes – Chief Scientific Officer and Chairman of the Board
Matthew J. Hogan – CFO
Su Il Yum Ph.D. – Executive Vice President – Pharmaceutical Systems Research and Development
David R. Hoffmann – Lead Independent Director
Chart Courtesy of StockCharts.com
DRRX’s 52-week low was $0.61 and the 52-week high was $1.71. Right now the stock is trading at $1.00. The 50-day moving average is near $1.38 a share and the 200-day moving average is at $1.04. The company has a market cap of $87.6 million and 87.7 million shares outstanding.
*All ratios and figures updated on 11/05/12
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