Expert Financial Analysis and Reporting

Introduction This report discusses a new licensing deal with Lee’s Pharmaceutical and alerts investors to two upcoming catalysts for the stock. In July, the critical results from the phase 2b trial of Aerosurf will be published. Before then in June, results from the phase 2a trial in babies of the 26 to 28 weeks will […]

Investment Thesis The current market valuation of Windtree is only $16 million. This seems extremely low for a Company that is close to having phase 2b data for its key drug Aerosurf. With success in phase 2b, Aerosurf, which potentially has blockbuster commercial potential, will be ready for a phase 3 trial. This key asset […]

Investment Overview The Stock Market Has Written off Aerosurf The current stock market valuation for Discovery Laboratories of $13 million (8 million shares times $1.60) assigns virtually zero probability for Aerosurf being successfully developed and commercialized. Stocks selling at such a micro-cap market valuation are usually dismissed out of hand by investors as there is […]

Introduction This report discusses the results of Discovery Laboratory’s first in human, phase 2a trial of Aerosurf. In writing this report, I am assuming that the reader has an in-depth understanding of Aerosurf and its disease target. If you are new to the Company, I would strongly urge you to read my in-depth article of […]

Quick Summary Discovery Laboratories has just completed a stock offering that was done at distressed prices. This was a disaster for existing shareholders as new shareholders participating in this deal now control about 58% of fully diluted shares. The Company now has cash to that could last until 1Q, 2017 which will allow for the […]

Glossary of Important Definitions For those of you who are not familiar with terms used in neonatology, I am starting this report with some definitions used in this report to explain the outcome of the recent phase 2a trial of Aerosurf. Surfactant Surfactant coats the alveoli (the air sacs in the lungs where oxygen enters […]

SmithOnStocks Mailbox April 28, 2015 A Quick Take on Recent Events If you have a question for the mailbox, contact me. Purpose of this Note I have written extensively on Antares, Agenus, Cytokinetics and Discovery Laboratories. I have Buys on Antares, Agenus and Cytokinetics. I have a Hold on Discovery (what a troubled history), but […]

Investment Thesis During the conference call on March 16, 2015 discussing 4Q, 2014 results, management announced that it had decided to find some type of partnership or licensing deal that will take over all of the financial and commercialization support for Surfaxin. It says that it is in advanced stages of discussions, but if nothing […]

Phase 2a Aerosurf trial completion has been pushed back to 1Q, 2015 from 4Q, 2014. All important topline results from Aerosurf phase 2b proof of concept trial are likewise pushed back from 2H, 2015 to 1H, 2016. Management mention of pneumothoraxes seen in phase 2a startled investors, but is not likely to be an issue […]

This agreement partners Discovery with a world class medical device developer and meaningfully de-risks development of Aerosurf. It also gives meaningful validation from a sophisticated third party of the revolutionary potential for Aerosurf in treating respiratory distress syndrome. The terms of the collaboration reduces capital needs for Discovery and Battelle only wins if Aerosurf is […]