Expert Financial Analysis and Reporting

Investment Thesis I continue with my buy recommendation on Cadence Pharmaceuticals (CADX). I believe that there is a high probability for an important near term catalyst that could give the stock a nice boost. This would be a legal settlement with Exela Pharmaceuticals, which is challenging Ofirmev’s patents. If it is similar to a settlement […]

My confidence in my long standing Buy recommendation on Cadence (CADX) has been strengthened by its pre-announcement that 4Q, 2012 sales of Ofirmev surprised on the upside. For the last half year, I have been writing that the Ofirmev launch has gained traction. The evidence is becoming solid as the company pre-announced that 4Q, 2012 […]

Investment Perspective and Opinion I continue with my buy recommendation on Cadence Pharmaceuticals. Cadence introduced its first and only product, the hospital analgesic Ofirmev (intravenous acetaminophen), in January 2011 when the stock was trading at about $7.00. The price climbed steadily and reached about $9.00 in mid-2011. Then sentiment began to shift sharply negative. The […]

Investment Conclusion Today’s announcement that Cadence (CADX) has entered into a settlement with Perrigo (PRGO) on patent litigation regarding Ofirmev is a positive. Uncertainty over the patent situation of Ofirmev has been a dark cloud over Cadence’s stock. This settlement is encouraging, but Cadence still has another generic challenger to deal with in Exela Pharma […]

Ofirmev Sales Are on a Strong Growth Track Cadence just reported a strong increase in sequential vial sales of Ofirmev; they grew 16% sequentially in August from July. There are currently two major issues controlling Cadence’s stock price: the progress of the Ofirmev launch and generic challenge to Ofirmev. I wrote at length about these […]

Recent Positive News Cadence’s stock has strengthened recently on the basis of two new pieces of information. The first deals with market research numbers from Wolters Kluwer; its estimates for vials shipped in July indicate Ofirmev is on track to meet management guidance for a sequential quarterly increase of 23% to 28% in 3Q, 2012 […]

I reiterate my Buy recommendation on Cadence. The Ofirmev launch has now gained traction as just reported 2Q, 2012 revenues of $11.1 million exceeded guidance of $10.0 to $10.4 million. Management guidance for 3Q, 2012 of $13.7 to $14.2 million is better than the existing Street consensus of $13.6 million. The metrics for gauging the […]

Investment Background Cadence Pharmaceuticals (CADX) achieved the goal of every emerging bio-pharmaceutical company when it received US approval for its first product Ofirmev on November 2, 2010; it was then launched on January 17, 2011. Ofirmev is an intravenous formulation of acetaminophen that was licensed from Bristol-Myers Squibb (BMY). It has been marketed in Europe […]

Investment Overview and Opinion I reiterate my Buy recommendation on Cadence. The Ofirmev launch has now gained traction as just reported 2Q, 2012 revenues of $11.1 million exceededguidance of $10.0 to $10.4 million. Management guidance for 3Q, 2012 of $13.7 to $14.2 million is better than the existing Street consensus of $13.6million. The metrics for […]

Cadence (CADX) has just released estimates from the independent market research firm Wolters, Kluwer on the number of vials that were shipped in April and May. The results are encouraging and suggest that Ofirmev could produce an upside sales surprise in upcoming second quarter. Management issued guidance after the first quarter for Ofirmev sales of […]