Expert Financial Analysis and Reporting

SmithOnStocks Mailbox  Comments on Agenus, ImmunoCellular, Discovery Laboratories, Neuralstem, Kite and Juno About the Mailbox: My mailbox comments are brief notes on stocks in which I am involved. They can come from recent events or from subscribers’ questions. Comments are meant to address specific issues about these stocks and are not full and balanced reports. […]

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 […]

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 […]

Investment Thesis At the time of launch of Surfaxin on November 8, 2013 Discovery Laboratory’s (DSCO) stock was selling at $2.00. By February 2014, it had climbed to $2.65, but has since slid to $1.60. This weakness was due to disappointment with the launch. The ever growing difficulty in gaining quick Pharmacy and Therapeutics (P&T) […]

Launch of Surfaxin The launch of Surfaxin has begun and initial results were below expectations causing the Company a few months ago to withdraw guidance of $8 to $10 million of sales in 2014. This along with the general weakness in emerging biotechnology stocks has caused weakness in the stock. New guidance will probably be […]

Introduction and Overview This note updates recent progress of the company along with my detailed investment outlook which I break into four different stages of time. The launch of Surfaxin has begun and initial results were below expectations causing the Company to withdraw guidance of $8 to $10 million of sales in 2014. New guidance […]

I have just published the first of a series of reports on Discovery Laboratories. Instead of publishing an extensive report (which I have actually written), I thought that I would publish smaller excerpts that may be easier to digest. I am starting with the most important part that goes through my thinking on why the […]