BST Position Update: November 7, 2014

November 7, 2014

. . . . Aeterna Zentaris (NASDAQ: AEZS) – Buy

AEZS received disappointing news from the FDA this week regarding their NDA for Macrilen.  In short, the FDA’s Complete Response Letter said the clinical trial didn’t support approval in its present form.

At this point, the future of Macrilen is uncertain.  And investors have been quick to punish the stock.

But don’t forget, we’re looking ahead to the phase 3 trial of zoptarelin doxorubicin as the primary catalyst for AEZS.  And those results aren’t expected until sometime in the first half of 2015.

Keep in mind, AEZS still has the cash to put into this trial.  So while the news is certainly disappointing, it’s not as bad as the current selloff indicates.

At this time, we are reiterating our buy recommendation on AEZS.

. . . . Acasti Pharma (NASDAQ: ACST) – Buy

Acasti recently reported positive phase two trial results regarding the CaPre.  The study showed CaPre was safe and effective in the treatment of patients with hypertriglyceridemia.

They are committed to moving forward with the Phase III clinical trial to achieve full regulatory approval of CaPre.

Nevertheless, ACST’s stock price has been volatile.  But the opportunity for this drug has ‘blockbuster’ written all over it.  We believe ACST is a buy.

Action To Take

• None at this time.

 

Category: BST Update