Expert Financial Analysis and Reporting

Mallinckrodt (MNK) announced that one of its subsidiaries will start a tender offer to acquire all of the outstanding shares of Cadence for $14.00 per share. This represents a 32% premium to the trailing 30-trading-day volume weighted average price of $10.62 per share for Cadence Pharmaceuticals, Inc. The transaction is expected to close in mid […]

On January 30, 2014, Cadence (CADX) announced that it had entered into a settlement agreement with Sandoz to resolve pending patent litigation in regard to Ofirmev. Cadence has granted a license to Sandoz that allows that company to launch a generic on or after December 6, 2020. Cadence has two patents covering Ofirmev in which […]

What SmithOnStocks Is All About It is traditional at the start of the year to go over stock picks for the coming year. It also is the time of the annual biotech “love in” in San Francisco, which I recently attended and that attracts some 30,000 biotech executives, analysts, venture capitalists and investors. I estimate […]

Patent Litigation on Ofirmev Cadence just received the best possible news on a trial judge’s decision on a patent challenge against Ofirmev. The U.S. District Court for the District of Delaware has ruled in favor of Cadence in the company’s patent infringement lawsuit against Exela Pharma Sciences. The court ruled that the two key patents […]

Investment Thesis By every measure, the launch of Ofirmev which began in January 2011, has been a spectacular success and continues to exceed investor expectations and management guidance. The revenue guidance was just raised for the third time this year to $107 to $109 million, up from $105 to $107 million and $102 to $105 […]

Cadence (CADX) announced that the US patent office has issued an initial action on the re-examination of one of two patents covering Ofirmev, the ‘222 patent on formulation. The PTO rejected certain claims in the patent while upholding others. However, all of the claims remain valid and in place until the PTO issues its final […]

Investment Thesis Cadence (CADX) reported another strong quarter for Ofirmev and in my mind the only question about the launch is the magnitude of success. In this report, I go through arguments that suggest that Ofirmev sales in a conservative case could reach $350 million in 2018 and in an optimistic case could reach $730 […]

Introduction This week’s edition of SmithOnStocks Opines includes brief comments on news concerning ImmunoCellular Therapeutics (IMUC) and Cadence (CADX), last week and have highlighted an upcoming presentation that could be a boost to Neuralstem’s (CUR) stock. ImmunoCellular Therapeutics (IMUC): The Company announced that the phase II trial of ICT-107 had reached an interim point that […]

Introduction I have started to write a newsletter on a weekly or bi-weekly basis to supplement my reports and blogs. In this week’s edition, I start with some thoughts on financing strategies for biotechnology companies. This can have an impact on stock prices second only to product development news. I follow this with some brief […]

Investment Thesis On May 31, 2012, I wrote a blog on Cadence entitled ” Ofirmev Launch has Gained Traction: Reiterate Buy ” when the stock was at $2.72. At that time the stock was still suffering from the widespread investor concern that the Ofirmev launch was a disappointment and that a legal challenge from generic […]