Expert Financial Analysis and Reporting

  Purpose of This Report This is 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 […]

Investment Thesis I believe that the recent stock offering by Discovery Laboratories (DSCO) removes the financing overhang that has been holding the stock back. The Company now has enough cash to see it through two years of the Surfaxin launch, phase IIa data on Aerosurf in mid-2014, phase IIb data on Aerosurf in mid-2015 and […]

Surfaxin is Finally Cleared for Commercialization in the US The long saga for Discovery Laboratories (DSCO) that began with the first filing of an NDA for Surfaxin in April of 2004 has finally come to an end as the FDA has cleared Surfaxin for marketing. The NDA was actually approved in March 0f 2012, but […]

Overview Discovery Laboratories just announced still another delay in the launch of Surfaxin. The Company received five Complete Response letters dating from 2004 before finally gaining approval of Surfaxin in March of 2012. Management then indicated that it planned to launch Surfaxin in November of 2012. However, in October it indicated that there was an […]

Investment Thesis We are now nearing the long awaited launch of Surfaxin. During the recent conference call on results for 4Q, 2012, the Company reaffirmed that it is anticipating the launch of Surfaxin in 2Q, 2013. The company through a debt deal with Deerfield Capital recently brought in $10 million of cash and will receive […]

Investment Perspective Discovery’s (DSCO) stock has languished since it announced before the opening on October 24, 2012 that it was delaying the launch of Surfaxin from November of 2012 until 2Q, 2013. The stock had closed at $2.75 on October 23 and it then closed on October 24 at $2.71. The initial investor reaction appeared […]

New Board and New CEO There has been a significant leadership change at Discovery Laboratories (DSCO) which has appointed a new CEO. In addition, changes have also resulted in an almost entirely new five member Board of Directors. Tom Amick has resigned as CEO and has been replaced by John Cooper, who was previously CFO. […]

Introduction I had the opportunity to meet with the management of Discovery Laboratories (DSCO) recently and focused on several issues: The problem with one of a number of tests used in quality assurance that was announced in October, 2012 and has delayed introduction from the planned launch of Surfaxin from November, 2012 to 2Q, 2013. […]

My Recent History on Discovery Laboratories On February 22, 2012, I initiated coverage of Discover Laboratories with a Buy and at a price of $2.82; the report was called Surfaxin Should Be Approved on its March 6th PDUFA Date. I urged investors to buy the stock before the PDUFA date. When I issued the report, […]

Purpose of Report Discovery Laboratories (DSCO) held a quarterly conference call on May 3 to update investors on the pending launch of Surfaxin and Afectair. This followed an important press release the day earlier that discussed a paper presented at the 2012 Pediatric Academies Society Annual Conference in Boston. This report highlights the key points […]