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Youngevity International YGYID Stock News

Youngevity International Inc (NASDAQ: YGYI) is spending some time in the green this morning, and for good reason. The company released details with regard to sales growth in the month of August, and the growth was impressive to say the least. At the moment (9:31) YGYI is trading at $4.69 per share after a gain of $0.01 per share or 0.24% thus far today.





YGYI Announces Impressive Sales Growth

As mentioned above, Youngevity International released its sales results for the month of August early this morning. Needless to say the growth was impressive. In fact, the company said that Café La Rica espresso, The OfficialCafecito of the Miami Marlins, has seen sales increase by 419$ in unit sales for the month of August. YGYI said that the sales increase was primarily driven by Ad Specials that took place during the month with retail partners. In a statement, Ernesto Aguila, President of the wholly-owned subsidiary of YGYI, CLR Roasters, had the following to offer…




We are saddened for all people that are suffering from the aftermath of Hurricane Irma. CLR Roasters is fortunate that our facilities did not sustain any damage and we were able to resume production and shipping to many of our accounts after only a few days of business interruption. Although August was a terrific month for our Café La Rica brand as we added 60 new accounts and saw a 46% increase in unit sales at Wal-Mart Stores, we have experienced a slower start in September due to Hurricane Irma within our Florida accounts. In spite of this slow down we expect the third quarter will experience overall stable sales and we anticipate that we will regain our sales momentum as we enter the 4th Quarter…”

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on YGYI. In particular, we’re interested in following the continued expansion of CLR Roasters as well as the rest of the incredible product line brought to market by the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Camber Energy Inc CEI Stock News

Camber Energy Inc (NYSEMKT: CEI) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a non-binding agreement to rapidly provide much needed capital. Of course, this led to excitement among investors who pushed the stock upward, prompting our partners at Trade Ideas to alert us to the movement. At the moment (10:26), CEI is trading at $0.18 per share after a gain of $0.01 per share or 7.12% thus far today.





CEI Skyrockets On Capital Agreement

As mentioned above, Camber Energy is having an overwhelmingly strong start to the trading session this morning after the company announced that it has executed a non-binding term sheet with an existing shareholder. The agreement was designed to rapidly provide additional equity capital to CEI. The capital will be used in order to resove current defaults with International Bank of Commerce. The company said that it is currently in discussions with the bank in order to reach a timely resolution to these defaults.




In the press release, CEI also announced that the NYSE American has granted a two day extension to submit its plan of compliance. This extension will come to an end on September 21, 2017. The company has a goal of regaining compliance with Sections 1003(a) (ii) and (iii) of the Company Guide by August 3, 2018. In the press release, Cambers Energy said that it is currently working on finalizing its plans. They also announced that the company is still pursuing possible resolutions to the defaults of its wholly owned subsidiary CATI Operating LLC.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on CEI. In particular, we’re interested in following the ongoing work to bring the company’s financial stability up to par. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Ibio Inc IBIO Stock News

Ibio Inc (NYSEMKT: IBIO) is having an overwhelmingly strong day in the market today, and for good reason. The company provided an intellectual property update early this morning that’s causing excitement among investors who are pushing the stock toward the top. As is nearly always the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:58), IBIO is trading at $0.39 per share after a gain of $0.06 per share or 19.33% thus far today.





IBIO Gains On IP Update

As mentioned above, Ibio is having an overwhelmingly strong start to the trading session this morning after the company released a press release, updating investors with regard to recent patents and inventions. Here are the updates provided through the press release:




The company announced that on September 19, 2017, IBIO received a US patent with the serial number 9,765,349. The patent is titled “SYSTEM FOR EXPRESSION OF GENES IN PLANTS”. This patent adds further protection to the US patent number 9,551,001, which the company was granted early on in 2017.

The company also announced that it has further strengthened its intellectual property in the fibrosis arena with a patent obtained that covered the company’s idiopathic pulmonary fibrosis and systemic sclerosis product pipeline. The patent that was provided covered an invention made by Dr. Carol Feghali-Bostwick and colleagues and is titled “USE OF ENDOSTATIN PEPTIDES FOR THE TREATMENT OF FIBROSIS”. THIS PATENT NUMBER IS 9,556,252. The patent was issued on January 31, 2017 and included claims covering the components of matter and method of use for endostatin-related peptides.

IBIO informed investors that it has obtained exclusive licenses to the patent above and related intellectual property that has been developed by Dr. Feghali-Bostwick and has entered into an ongoing collaboration agreement with Dr. Feghali-Bostwick’s current institution, the Medical University of South Carolina. This university has led further development and the invention of the potentially breakthrough biotherapeutic approach to fibrotic disease described by this family of patents.

Finally, IBIO said that it has received a Notice of Allowance for US serial number 14/366,071, which is entitled “INFLUENZA HEMAGGLUTININ ANTIBODIES, COMPOSITIONS AND RELATED METHODS”. Ultimately, this will further strengthen the company’s intellectual property in the vaccine and antibody category.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on IBIO. In particular, we’re interested in following the intellectual property updates surrounding and ongoing development of the company’s impressive pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Alnylam Pharmaceuticals, Inc. ALNY Stock News

Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY) is having an overwhelmingly positive start to the trading session this morning, and for good reason. The company, in cooperation with Sanofi (SNY) released strong clinical data, causing excitement among investors and sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:27), ALNY is trading at $97.75 per share after a gain of $22.71 per share or 30.26% thus far today.





ALNY Gains Big On Positive Clinical Data

As mentioned above, Alnylam Pharmaceuticals is having an overwhelmingly strong start to the trading session this morning after reporting positive clinical data in cooperation with Sanofi. The data comes from the Phase 3 clinical study of Patisiran as a treatment in Hereditary ATTR (hATTR) Amyloidosis Patients with Polyneuropathy. Here are the key points from today’s press release with reard to the news…




  • Endpoints – ALNY informed investors that investigational RNAi Therapeutic Patisiran has met its Primary and all Secondary Endpoints. The treatment showed a highly significant reduction in neuropathy progression and improvement in quality of life at 18 months when compared to the placebo.
  • Regulatory Goals – As a result of the strong data, ALNY expects to file its New Drug Application with the United States Food and Drug Administration in late 2017 as well as its Marketing Authorization Application in early 2018.
  • Results – Finally, the company will be presenting the full results of the study at the 1st European ATTR Amyloidosis Meeting in November. The meeting will be held in Paris, France and Cambridge, MA on September 20th.

In a statement, John Maraganore, Ph.D., CEO at ALNY, had the following to offer…

We are very proud to report the first ever positive Phase 3 results for an RNAi therapeutic, marking the potential arrival of an entirely new class of medicines. This moment is the culmination of a 15-year journey of tireless work by countless contributors who have overcome enormous scientific and business challenges to make RNAi therapeutics a reality… This is an incredibly exciting milestone for Alnylam and RNAi, and most importantly for patients and their treating physicians and families. We extend our deepest gratitude to all the patients, investigators and study staff who participated in the APOLLO study – they made this important scientific progress possible.”

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on ALNY. In particular, we’re interested in following the story surrounding the ongoing efforts to bring Patisiran to the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Northern Dynasty Minerals Ltd NAK Stock News

Northern Dynasty Minerals Ltd (NYSEMKT: NAK) is having yet another incredible day in the market today as investors continue to track the Pebble Project. However, as I dug around today, I found an interesting concept. Many on message boards are speculating that Rio Tinto is building funds for a buyout. Today, we’ll talk about what we’ve seen from Rio Tinto, why some believe that they are preparing for an NAK takeover, and what we’ll be watching for ahead.





What We’re Seeing From Rio Tinto

As mentioned above, many investors at NAK have been under the impression that the company is gearing up for a takeover, and most believe that Rio Tinto is going to be the one to make the offer. The reason for this is relatively simple. Recent news surrounding RIO suggests that they are gearing up for something big financially.




Recently, the investment firm Macquarie said that RIO would be selling some of its assets, hoping to raise up to $10 billion. The firm said that the London-based company could bring in between $3.3 and $4.3 billion should it sell its outstanding coal operations. On top of that, Rio Tinto could raise up to $2.8 billion should it choose to sell its aluminum and smelting operations. The investment firm believes that in total, between all assets it is considering selling, it could bring in roughly $9.9 billion.

Is This To Acquire NAK?

As mentioned above, I’ve seen several messages on message boards suggesting that, at the moment, Rio Tinto is building up funds in order to acquire Northern Dynasty Minerals. First and foremost, I want to make it clear that this is currently nothing more than speculation. RIO may just be building funds to move forward with their own operations. However, it’s hard not to argue that the company would gain quite a bit from acquiring NAK.

If I were asked about a potential acquisition of NAK a year ago, I would have said it is too early in the game. However, today, things are very different. Throughout the year, things have changed in a big way with regard to the Pebble Project, and if things keep going in this direction, the project could be an overwhelmingly profitable one! The company has gotten to the point where they will be able to work toward permits for the project, which was a long fight and well won.

As a result, they are getting overwhelmingly close to beginning construction on what could be one of the largest mines in the world. So, it wouldn’t be inconceivable if a big company like RIO wants to take a piece of the pie. As to the question above, no one quite knows if Rio Tinto is raising funds to acquire Northern Dynasty Minerals, but it is definitely not out of the question.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on RIO and NAK. In particular, we’re interested in following the asset sales at RIO and seeing if the company is indeed interested in acquiring NAK. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Opexa Therapeutics OPXA Stock News

Opexa Therapeutics Inc (NASDAQ: OPXA) is having a relatively strong day in the market today; at least, it has been in the green all morning. The reason is relatively simple. Today is the day that investors will vote with regard to a proposed merger. At the moment (10:36), OPXA is trading at $1.10 per share after a gain of $0.01 per share (0.93%) thus far today.





OPXA Investors Await Big News

As mentioned above, today could be a big day for Opexa Therapeutics. The company recently announced that it intends to acquire Acer Therapeutics, Inc. However, before doing so, they need to gain support from investors. That’s where today comes in. Today is the last day for shareholders to vote with regard to the potential merger.




At the moment, Institutional Shareholder Services Inc. and Glass, Lewis & Co. are both recommending that shareholders vote for the proposed merger. If the merger goes through, Acer Therapeutics will become the wholly-owned subsidiary of Opexa Therapeutics, which would be the surviving company in the merger.

However, it’s important that investors take the time to consider the options here and make their vote heard, especially if they are for the merger. After all, if you are for the merger and fail to vote, your vote will be the same as an “Against” vote. If you are a shareholder and would like to cast your vote, you can do so by calling:

Advantage Proxy, Inc.

Toll Free: (877) 870-8565

Collect: (206) 870-8565

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on OPXA. In particular, we’re interested in following the news surrounding the potential merger and hoping that the merger does indeed get executed. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Chicago Bridge & Iron Company N.V. CBI Stock News

Chicago Bridge & Iron Company N.V. (NYSE: CBI) is having an interesting day in the market today. While the stock found itself in the red early on, most recently, the stock has been spiking as the result of rumors. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:59), CBI is trading at $15.99 per share after a gain of $0.82 per share (5.41%) thus far today.





CBI Gains On Takeover Chatter

As mentioned above, Chicago Bridge & Iron Company is having an interesting day in the market early on today. While the the stock was in the red early on, the stock has been spiking upward more recently as rumors start to break. The rumor is that the company will soon be taken over at a price of $25.50 per share. This represents an overwhelmingly strong premium. However, as most market rumors, this one is relatively vague. There is no insinuation of who may be interested in purchasing the company, and finding the source of the rumor is proving to be nearly impossible.




As is the case every time we cover rumors, it’s important that we remind readers that the CBI rumor isn’t the only one we’ve seen recently. In fact, rumors seem to be a daily occurrence in the market. Like most rumors, market rumors generally lack validity. In this case, because the rumor is overwhelmingly vague and tracking the source is nearly impossible, we aren’t getting our hopes up and don’t believe that you should either. So, if you’re going to trade on this news, please be sure to do so with caution.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on CBI. In particular, we’re interested in learning if there is any validity to these rumors. While we don’t believe that the company will be taken over, anything can happen in the market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Delcath Systems, Inc. DV32 DCTH Stock News

Delcath Systems, Inc. (FRA: DV32) (Previously NASDAQ: DCTH) is having yet another rough start to the trading session this morning. As the company continues to burn bridges with its investors, it seems to be on a bit of a freefall as of late. As is normally the case, our partners at Trade Ideas were the first to alert us to today’s declines. Currently, DV32 (previously DCTH) is trading at $0.06 per share after a loss of 0.002 per share (3.23%) thus far.





The Problem With DV32 (DCTH) Is A Big Disconnect Between Management And Investors

As mentioned above, Delcath Systems has been finding its way downward in the market as of late, and for good reason. There has been a big disconnect between investor goals and the goals of management recently. Most recently, the disconnect has had to do with plans to process a reverse split.

You see, DV32 (DCTH) wanted to process a 500-to-1 reverse split, bringing the value of their stock well above the required $1 per share and opening the door to funds as well as eliminating some near-term debt obligations. However, in order for this to happen, the company needed approval from investors, and that vote didn’t go well.




That wasn’t for lack of the company trying to push investors in the direction that they wanted them to go. Not only was there an extension to the deadline on the vote when it was clear that investors planned on voting no, but DV32 (DCTH) also all but harassed investors to try to get them to change their votes.

Through the use of a call center, Delcath Systems continuously called investors in an attempt to get them to change their votes. I’ve received several messages from investors informing me that not only were they calling, but they were calling several times per day and largely harassing investors into voting yes. I’ve also received a couple of recorded phone calls in which the call center clearly misled investors with regard to voting deadlines and showing that c-level management was unaware of just what the representatives of these call centers were doing – or at least they claim to be unaware. Nonetheless, the harassment continued.

The Reverse Split Failed Anyway

Regardless of how much DV32 (DCTH) tried to get investors to vote yes on the reverse split, they ultimately failed. As a result, the company recently reached out to investors with a press release, letting them know that the company would be delisted from the NASDAQ and would commence trading on the OTC market. However, there were a few things that investors wanted to see that Delcath Systems management didn’t offer.

Throughout the time I’ve been following the company, I’ve seen several messages and even a petition where investors were hoping that the management at the company would reduce their exorbitant salaries. However, at the moment, these salaries remain the same. Also, none of the management at DV32 (DCTH) have any skin in the game. Investors would like for them to invest, or take some of their pay in shares. However, that hasn’t happened either.

The Problem Isn’t In The Product

If there is one thing that DV32 (DCTH) does have going for them, it’s their product. The company has received approval in Europe for Chemosat, and treatments in the region are going well. The company is also looking for approval in the United States. However, considering the current financial standpoint of the company, it may be difficult for the company to stay afloat through the next regulatory catalyst.

What’s Next

The truth is that I have no connection to the c-suite at Delcath Systems, nor any sources inside the company. So, I know just about as much about their future plans as you do. However, considering that the reverse split was voted down and the financial position of the company, I wouldn’t be surprised to see the company put itself up for sale. After all, their intellectual property is valuable, regardless of how poorly management is performing. If a strong management team took over the product, we could see great things happen. However, because of various measures that the company has in place to protect management, the only way this is likely to happen is if the company were to sell its assets or decide to sell itself!

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on DV32 (DCTH). In particular, we’re interested in seeing what moves the company makes to stay afloat in the months ahead. We’re also watching to see if management makes the changes that the investors would like to see or considers selling the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Rite Aid Corporation RAD Stock News

Rite Aid Corporation (NYSE: RAD) is having a relatively strong start to the trading session in the pre-market this morning, and for good reason. The company announced today that it has received regulatory clearance to sell 1,932 stores and more. Of course, this led to excitement among investors, pushing the stock upward and prompting our partners at Trade Ideas to alert us to the movement. At the moment (8:30), RAD is trading at $2.76 per share after a gain of $0.03 per share or 1.10% thus far today.





RAD Gains On Regulatory Clearance To Sell Stores

As mentioned above, Rite Aid Corporation is having a relatively strong start in the pre-market hours this morning after it announced that it has received regulatory clearance to sell nearly 2,000 stores. Under the deal, Walgreens Boots Alliance, Inc. (NASDAQ: WBA) will purchase 1,932 stores, 3 distribution centers and related inventories. Under the terms of the agreement, WBA will be paying RAD a total of $4.375 billion in cash for the acquisition of the stores on a cash-free, debt-free basis. The deal also gives Rite Aid the ability to purchase generic drugs that are sourced through an affiliate of WBA at a cost that is equivalent to Walgreens for a period of 10 years.

The agreement is part of a deal that was announced earlier. However, the deal has been amended, giving RAD the ability to retain approximately 250 additional stores when compared to the original agreement that was signed in 2017. In a statement, John Standley, Chairman and CEO at RAD, had the following to offer…




Securing regulatory clearance provides us with a clear path forward to realize the benefits of this transaction. With a compelling and more profitable store footprint in key markets, enhanced purchasing capabilities and a stronger balance sheet and improved financial flexibility, we are well positioned to implement our plans to deliver improved results… I am proud of our entire Rite Aid team for their extraordinary efforts during this process and their tremendous dedication to taking great care of our customers and patients. We are committed to supporting a smooth transition as we remain focused on delivering a great customer experience, improving our business and creating value for all of our stakeholders.”

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will be keeping a close eye on RAD. In particular, we’re interested in following the story surrounding the sale of the stores and excited to see how the company uses the funds and the new opportunities on the generic purchasing front. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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Aytu BioScience AYTUD Stock News

The battle is underway for market share in the $2 billion testosterone replacement therapy (TRT) market, and two of the companies that are working hard to secure their stake is Antares Pharma and Aytu BioScience. Although both companies have their own recipe for testosterone replacement success, which of them has the product that can pump up near-term investor rewards?





Playing the role of “wise choice” investor is an arduous task, and when faced with determining which company, Antares Pharma or Aytu BioScience, will likely attract market share from its innovative TRT product, even experienced investors may get blinded by some similarities between the two products. However, upon closer inspection, the distinctions between the two are vast, and only one product of the two is likely to emerge as the potential market disruptor in this multi-billion dollar market.

Let’s see what each has to offer.

Can Antares Pharma Get Xyosted™ Approved?

First, let’s look at Antares Pharma’s potential contribution to the TRT market. For its part, ATRS is planning to offer Xyosted™, a single use, fixed dose subcutaneous testosterone enanthate that gets delivered via auto-injection. The auto-injection is intended to allow for rapid subcutaneous delivery of a viscous testosterone solution through a single use, 27-gauge needle. For those paying close attention, the modifier “potential” was used to describe the treatment because Xyosted™ is not yet FDA approved for market, but according to Antares has a PDUFA review date set for October 20, 2017. If all goes well during the application process and FDA approval is earned, ATRS says that it expects to launch the product in December of 2017.




Antares is not alone in its attraction to this lucrative market, and several companies are currently working to take a bite out of the multi-billion dollar TRT pie. But, as many investors understand, the small window of opportunity may only exist for a company that can truly deliver a better product for TRT patients, replacing treatments that are littering the TRT landscape with Black Box warning safety labels.

Efficacy and safety will be the key measures of success, and Antares has touted that roughly 92.7% of Xyosted™ test subjects reached the trials primary endpoint after 12 weeks of treatment. That’s a good thing. Additionally, almost all of the patients reported the injection itself was relatively painless, which is also a welcome sign for Antares. However, and not to rain on the ATRS parade, while most patients did not report an extreme level of physical discomfort, the larger question remains as to whether clinicians consider the current generic injectables as overly painful, an important issue since over 4 million prescriptions were written last year for generic testosterone injectables. That’s a big problem facing ATRS and Xyosted™, and the company is hoping to influence doctors to prescribe a product that may hurt less, but not offer much more therapeutic benefit at a much higher cost to patients. Therein lay the struggle. And, even if Xyosted™ gets approved, ATRS may be fighting an uphill battle to gain favor with prescribers that work to keep the cost of medication down for their patients. The dilemma that clinicians may face if prescribing Xyosted™ is that it does not cost just pennies more, it will cost a patient hundreds more in monthly cost. And, despite the fact that the pharmaceutical industry is flush with cash and fills an office with catered meals and friendly sales reps, at the end of the day, cost matters.

Perhaps if Xyosted™ was the first and only injectable on the market, the relative ease of use might be alluring to patients. But, the truth of the matter is that the market is saturated with FDA approved generic injectables, and the cost difference between an approved Xyosted™ and a generic product is substantial. The patient cost estimates for Xyosted™ run high, with treatment prices expected to cost upwards of $400 per month, with some estimates hitting a higher monthly price tag of roughly $500 per month. Now, although men may be willing to pay any price to get the TRT they require, the current cost of generic injectable treatment is less than $100 per month, and reports of uncomfortable or painful injection sites are not causing a movement for change amongst users. Thus, if the current generic treatment is not all that painful and may deliver similar results for up to $5,000 a year less than Xyosted™, ATRS may have its hands full when trying to convince prescribers to offer their treatment.

But, the battle may not end there. Because of the cost, questions abound as to whether managed care and Medicare payors will give enough credence to Xyosted™ simply because of its relatively pain-free delivery method. And, not only that, ATRS may face additional pressure if an approved Xyosted™, even with its premium price, is not able to demonstrate superiority in efficacy or safety over currently available generic injectables. Another thing, if history serves as a guide, the likelihood for broad support of a high-priced medication that does not provide substantial benefit to the patient often finds its level of interest from insurers to be considerably and materially less responsive for reimbursable coverage.

Antares, by the way, is not oblivious to the potential challenge. They have acknowledged that only about 50% of the managed care accounts that they will be targeting upon approval will consider NOT blocking access to Xyosted™ during the first six months on the market. That may be a half glass-full scenario for ATRS, but, as that glass empties, they then face the potential that approximately 50% of the insurance companies will not even consider coverage. Simply put, if an approved Xyosted™ does not provide a substantial improvement in intended results, many patients may be hard pressed, and reluctant, to fork over $400-$500 per month, and likely opt for a treatment alternative which may cost less than a hundred bucks per month.

In a nutshell, ATRS is likely to receive FDA approval for Xyosted™, but from an investor’s point of view, a determination must be made as to whether an approved Xyosted™ brings with it enough clinical evidence and real patient benefit to substantiate its high price. And, if investors can justify their reasoning in all things Xyosted™, then they must also hold onto the hope that the current 50% interest by insurers does not trend back toward zero.

Aytu BioScience Brings Natesto®

This is no exaggeration, Aytu BioScience may be the sleeping giant in the sector. They offer Natesto®, the only nasally administered, two to three doses per day TRT treatment on the market. Quietly compounding sales, the prescription rates for Natesto® have risen more than 300% in just the past four months and has gained sequential prescription writing momentum throughout all of 2017. Now, investors should not expect this potential giant to emerge as a leader overnight, but, if Natesto® continues to prove itself as the only NON-Black Box warning topical TRT product that can provide meaningful therapeutic benefit without the severe potential side effects, investors may indeed get treated to significant Natesto growth spurts in the months to come.

Contrary to Antares’ hope for 50% reimbursement levels, at Aytu, provider support is growing, and Natesto® is already receiving coverage from many managed care providers. Following the momentum, AYTU management has stated that they are actively pursuing additional coverage agreements during the next several months. Beyond just insurers, though, and proving a clear value proposition from a potentially approved Xyosted™, is that Natesto® ranges between $25 – $100 per month for treatment, and in no case will a patient ever pay more than $150 when using Aytu’s AssureRx patient co-pay program. Just considering price, the difference in cost between Xyosted™ and Natesto® may save a patient upwards of $475 per month in out-of-pocket expense unless Antares offers a similar program.

Natesto® loses no points in the convenience department, either. The product is easy to use and is painless. While both Xyosted™ and Natesto® offer minimal chance for accidental transmission of testosterone, Natesto® provides additional benefit. The treatment is nasally administered, offers discreet dosing, and provides a measured delivery of testosterone.

Other benefits press the case for Natesto®. The product requires no special diet, no injection site pain, and perhaps most importantly from a safety perspective is that it is the ONLY currently marketed topical TRT without the severe FDA administered Black Box warning applied to its label. Safety is critical but efficacy is what men demand, and Natesto® checks that box as well.

Natesto® has provided an improvement in mood, increased erectile function, and has shown minimal impact on luteinizing and follicle stimulating hormones, and hematocrit levels, which cannot be claimed by the currently marketed alternatives, especially the injectable testosterone products. Compared to others outside of Xyosted™, like AndroGel® and Axiron®, Natesto® may be positioned to earn substantial share based on its safety, its proven efficacy value, and its ability to do its job without interfering with critical human hormone levels.

While eliminating much of the concern for the accidental transference of testosterone, Natesto®, in clinical studies, demonstrated meaningful improvement in all areas of erectile function, showed improvement in over 90% of patients that used the product and is showing superiority on many product levels. With these advantages proven, Aytu’s Natesto® is well positioned to benefit from a market in need of a safe product that limits unintended use and provides substantially better benefit to patients.

Now that AYTU has shown what Natesto® can do, the company has built a dedicated sales-force to drive prescription rates higher, and institutional investors demonstrated their support by participating in a recent $11.8 million private placement. The level of interest in that deal shows a belief that the company can emerge as a contender in the TRT space. But, while the potential is vast, assuming that AYTU grabbed only a 5% share of the existing $2 billion market, recognizing revenue over $100 million would indeed serve as a means to drive the company value sharply higher. And, if a 5% initial market penetration gets earned, then investors may expect the significantly undervalued market cap of roughly $15 million to likely get replaced with a value more representative of their peers, representing a significant opportunity for investors at these levels.

Wiser Choice

While both stocks are low priced, the unexplainable market-cap variance between ATRS and AYTU may present an enormous opportunity to those that favor Aytu BioScience. Many investors enjoy the fact that regulatory uncertainties are already behind Aytu. They are further impressed that Natesto® is earning sequential traction in prescription rates over the past three-quarters. In addition to Natesto® ‘s growing strength in the TRT market, as mentioned, Aytu recently completed an $11.8 million private placement and has enough cash on hand to lead the company to break-even or EPS territory, a milestone that may occur within the next twelve months. With just over 4 million shares outstanding and a float that is small, any hint of continued good news may serve as a spring board to the upside for investors that are looking for both near and long-term growth opportunity.

In the analysis of Antares and Aytu, the “Wiser Choice” is Aytu BioScience. While ATRS may work its way higher if Xyosted™ gets approved, at current levels investors appear not to have too much promise in its market potential. An argument may get shared that Aytu’s stock price is indicative of its opportunities with Natesto®. However, I find that argument to be moot, and most every metric for potential success for Natesto® is lining up as it should. Many insurers are covering the product, Natesto® has proven to be the safest treatment in its class, and has a price tag that may be considerably less than an approved Xyosted™.

With a significant market opportunity, veteran management, and a solid balance sheet in place, the value in Aytu’s Natesto® is beginning to deliver results and strengthen the revenue stream, which should provide the juice necessary to drive shareholder value higher.

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