Proteostasis Therapeutics Inc (NASDAQ: PTI) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced their financial results for the fourth quarter and full 2017 year, beating expectations and leading investors toward excitement. Today, we’ll talk about the report, what we’re seeing from the stock, and what we’ll be watching for ahead.
PTI Reports Strong Financial Results
As mentioned above, Proteostasis Therapeutics is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company reported its financial results, beating expectations. This news shortly follows the company’s announcement of Orphan Drug Designation given by the FDA to PTI-428. So, today’s news only expands the excitement. Nonetheless, here’s what we saw from the report:
- Fourth Quarter Loss – In terms of net loss, the company did overwhelmingly well. During the quarter, analysts expected that PTI would generate a loss of $16.3 million. However, the company actually reported a loss in the amount of $13.4 million, blowing away expectations.
- Cash – In terms of cash, cash equivalents and short term investments, the company is also doing incredibly well. By the end of 2017, this figure was up to $74.5 million. This means that at the current rate of loss, the company has the ability to operate for well over a year without bringing in additional funding.
In a statement, Meenu Chhabra, President and CEO at PTI, had the following to offer:
The field of CF drug development is in the midst of many great advances that indicate we may not have seen the ceiling for FEV1 improvement. The FDA’s recent Breakthrough Therapy Designation for PTI-428, together with our in vitrodata, underscores the potential for our novel CFTR modulators, including PTI-428 and PTI-801, to increase pulmonary function improvements in combination with currently marketed CF modulator therapies.
In 2018 we are poised to deliver our first clinical data based on wholly proprietary combinations of PTI’s novel amplifier, third generation corrector and potentiator, PTI-428, PTI-801 and PTI-808, respectively. We have initiated dosing in a study of a double combination of PTI-801 and PTI-808 in CF subjects and plan to report initial data in the middle of this year. The Company is also on track to initiate dosing in the study of our triple combination of PTI-428, PTI-801 and PTI-808 in CF patients in the second quarter of this year and we anticipate preliminary results from that trial in the second half of 2018. We believe that these proprietary double and triple combinations have the potential to deliver novel treatment options for CF patients.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news causes moves. In this particular case, the news was overwhelmingly positive. Following up on recent excitement from the Orphan Drug Designation, Proteostasis Therapeutics reported incredible results for the fourth quarter. So, it’s no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:11), PTI is trading at $7.93 per share after a gain of $1.38 per share or 20.98% thus far today.
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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 PTI. In particular, we’re interested in following the ongoing development of PTI-428 as the treatment just got Orphan Drug Designation and seems overwhelmingly positive. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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