The market has been on fire of late as investment managers found themselves way underexposed with the market breaking to new all-time highs in both the S&P and Dow.
That has the animal spirits starting to boil over, which is a huge tailwind for small and micro cap stocks, especially those with solid growth stories and improving technicals.
Today’s pick is a perfect example: CTXR is a pharma play with several strong catalysts in play, and a recent bullish chart breakout on a big jump in volume.
Symbol: CTXR
Company: Citius Pharmaceuticals, Inc.
Quote: http://finance.yahoo.com/q?s=CTXR
Latest News: http://finance.yahoo.com/q/h?s=CTXR+Headlines
Company Website: http://www.citiuspharma.com/
Key Points:
- CTXR is starting to get noticed by traders, with a 400% jump in average daily volume over the past 5 sessions.
- CTXR has a small trading float of just 20M shares, which suggests the stock could launch higher on any additional influx of interest.
- CTXR just recorded a MACD Bullish reversal, suggesting a technical change in trend.
- CTXR just streamlined its focus, increasing its relative investment in IP-protected treatments outside of the obesity market, while beefing up the credibility of its board. Both big moves.
CTXR is a specialty pharmaceutical company.
These guys are “dedicated to the development and commercialization of critical care products with a focus on anti-infectives, cancer care and unique prescription products using innovative, patented or proprietary formulations of previously approved active pharmaceutical ingredients.”
These are obviously some huge unmet needs, which is promising in terms of market positioning.
But, here’s the best part: CTXR uses previously approved drugs with substantial safety and efficacy data, which reduces risks associated with the R&D cycle – often the biggest pain point for pharma plays.
What’s the next biggest risk in that game? Clearly, it’s intellectual property protection and competition with existing therapeutic approaches. That’s why we love to note that CTXR focuses on products that already have in place a strong armor where these issues are concerned.
That’s a strong starting point, and a good way to rationalize the recent surge in volume and upside price action.
In addition, the company recently streamlined its offering stable by discontinuing Suprenza, its FDA-approved phentermine-based product for weight loss. (See Full Press Release Here). That sets them up to focus more on the company’s Phase 3 asset Mino-Lok and their Phase 2b asset Hydro-Lido for hemorrhoids.
Myron Holubiak, CEO of Citius, noted, “We feel that the obesity and weight management market has shifted and therefore we are devoting our efforts on developing our leading two assets. We anticipate a minimal financial impact to Citius from discontinuation since we eliminate our ongoing regulatory expenses and have not historically received royalties from the product.”
That should release future projections of bottom line performance much higher.
CTXR also firmed up its Board (which is hugely important for a bio/pharm play), announcing that it has appointed Dr. Eugene Holuka to the board of directors effective June 23, 2016.
Dr. Holuka is an internist and has practiced in critical care medicine for almost thirty years. He is presently an attending physician at the Staten Island University Hospital where he has practiced since 1991. Dr. Holuka has also served as an Adjunct Clinical Assistant Professor at the Touro College of Osteopathic Medicine since 2011. Prior to the acquisition of Leonard Meron Biosciences, Inc. (“LMB”) by the Company in March 2016, he was a member of the LMB Scientific Advisory Board from April 2014 until the present day. Dr. Holuka received the Ellis Island Medal of Honor in 2000 and has served on the NECO Committee Board since 2005. He was an Executive Committee Member on the Forum’s Children Foundation from 2000 until 2008. (See Full Press Release Here).
Technically, the stock is seeing a major surge in volume in recent days as it breaks out of its downtrend and starts to inflect off support in a big way. This stock only has 20M shares on the float, it just saw a MACD bullish inflection, and interest is objectively picking up in a manner that strongly favors further appreciation.
Keep an eye on this one tomorrow off the bell. It could see a morning spike as that interest intensifies.
About CTXR
CTXR (Citius Pharmaceuticals, Inc.), a specialty pharmaceutical company, develops and commercializes therapeutic products in the United States.
CTXRs products include Hydrocortisone-Lidocaine Cream, which is under phase II of clinical trial for the treatment of hemorrhoids.
CTXR has a collaboration and license agreement with Alpex Pharma S.A. to develop and commercialize orally disintegrating tablet formulations of pharmaceutical products in United States, Canada, and Mexico.
CTXR was founded in 2007 and is headquartered in Maynard, Massachusetts.
I am sure there in no doubt in your mind that CTXR is ready for a major move ! So, time to get in before the breakout !
