BST Trade Alert – February 24, 2015
Recommendation:
Buy Neuralstem (AMEX: CUR) up to $4.00 per share.
About the Company:
Neuralstem is a clinical stage biopharmaceutical company. They focus on the development and commercialization of treatments for central nervous system diseases.
Their technology enables the production of regionally specific, physiologically relevant neural stem cells for therapeutic use for the treatment of central nervous system diseases.
They’ve discovered and patented a library of small molecule neurogenic compounds to treat psychological and cognitive disorders.
Its clinical program products include NSI-566, which is in Phase II clinical trials for the treatment of amyotrophic lateral sclerosis, and Phase I clinical trials for chronic spinal cord injury.
The company’s clinical development products also comprise NSI-566 that is in Phase I/II clinical trials for motor deficits due to ischemic stroke in China; and NSI-189 that is in Phase Ib for the treatment of major depressive disorders.
They currently have $27 million in cash on the books. And they will raise more cash in the future through additional stock offerings.
About the Drug:
Amyotrophic Lateral Sclerosis, ALS or Lou Gehrig’s Disease, is a progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord.
Motor neurons reach from the brain to the spinal cord and from the spinal cord to the muscles throughout the body. The progressive degeneration of the motor neurons in ALS eventually leads to their death.
Neuralstem is completing phase II clinical trials of NSI-566 for the treatment of ALS. The treatment has received FDA orphan drug designation. And the majority of the trial costs have been covered by grants.
About the Market for This Drug:
There is currently no existing treatment for ALS.
It’s a disease that’s diagnosed around 5,600 times per year in the US and there are approximately 30,000 people living in the US with the disease at any given time.
About the Potential Catalyst:
The results from the phase II testing of NSI-566 are expected sometime in the first quarter of 2015. So, we won’t have to wait long to find out if Neuralstem has a major breakthrough on their hands.
About the Shares:
CUR is currently trading for $3.62. It’s up 39% this year as investors have started to pile into the stock in anticipation of the trial results.
We believe the new uptrend will continue up until the results are announced.
Key Facts:
Company: Neuralstem
Ticker: CUR
Recent Price: $3.62
Market Cap: $332 million
Average Daily Volume: 887.61K shares
Chart:
Category: BST Trade Alert
