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AcelRx: Undervalued Heading Into A Phase 3 Catalyst


-AcelRx is a relatively unknown biotech company focused on the development and eventual commercialization of treatments for moderate-severe acute pain.

-Shares are trading at $2.40 while the company has $1.59/share in cash alone, assuming they maintain their cash burn rate, they should have enough cash to last until early 2019.

-Peak annual sales for both Dsuvia and Zalviso could exceed $1.7 billion annually, both drugs have near-term binary catalysts which will decide the fate of AcelRx.

-Zalviso has already conducted three positive phase 3 trials and will be reporting topline data from a 4th by the end of July, Zalviso is already approved in the EU.

-With such a low market cap of 100 million and annual drug sales which could potentially exceed $1.5 billion in the future, AcelRx offers an asymmetric risk/reward ratio for investors.

Investment Thesis

AcelRx (ACRX) shares are deeply undervalued, the true potential of their pipeline is not being priced into the share. Shares are currently trading at $2.40 giving AcelRx a market cap of $104.07 million while they have over $72 million in cash and cash equivalents alone. Their pipeline consists of two drugs which are in late stage development, Zalviso and Dsuvia. Dsuvia is pending FDA approval in October and there is a phase 3 data readout for Zalviso due by the end of July, these two drugs have combined annual peak sales revenue of $1.7 billion. Read the rest of the article here

At the time of writing, shares of AcelRx traded at $2.40. As of July 7th, shares trade at $3.45.

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