AcelRx Pharmaceuticals Inc (NASDAQ: ACRX) is having an incredibly strong day in the market today, and for good reason. A Seeking Alpha contributor wrote an article about the company, bringing a massive coming catalyst to light and causing excitement among investors. Of course, this led to gains in the stock, prompting our friends at Trade Ideas to alert us to the movement. At the moment (9:49), ACRX is trading at $3.00 per share after a gain of $0.60 per share (25.00%) thus far today.
ACRX Gains On Coming Catalyst
As mentioned above, AcelRx is having an incredibly strong day in the market today, and for good reason. A report on Seeking Alpha pointed out that the company is undervalued and has a massive catalyst on the horizon.
On the valuation side of the equation, the argument is a very simple one. While the company has an average price of under $3 per share, they have assets worth far more than that. In fact, the company actually has $1.59 per share in cash alone.
Perhaps most importantly, there are two big catalysts coming surrounding the stock. First and foremost, the company has a treatment known as Dsuvia that is pending approval by the FDA. The PDUFA date for this potential approval comes in October. On top of that, there’s Phase 3 data that will soon be released surrounding Zalviso. That data is expected to be released by the end of July. The value of these treatments, if they make it to the market, is incredibly high. In fact, it is estimated that ACRX could reach peak revenue from these treatments in the amount of $1.7 billion annually if all goes well.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on ACRX. In particular, we’re interested in following the two catalysts that will likely be hitting relatively soon. Both the FDA news surrounding Dsuvia in October and the data release that should be offered this month could lead to massive movement in the value of the stock. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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