Conatus Pharmaceuticals Inc (NASDAQ:CNAT) posted earnings for 3Q2016 earlier in November. EPS of ($0.31) shows continued investment in trajectories of company’s liver treatment products. The stock price has halved from its IPO price of $11. Given the report of the firm’s joint-venture deal with pharmaceutical entity Novartis AG (ADR)(NYSE:NVS), focus will shift from funding to development on studies of company’s liver disease treatment.
Possible drivers of imminent stock price performance comprise further milestones and trials. As per the updates, 2018 is intended to be a big year for getting clarity on liver cirrhosis cure. Management offered its portfolio high and purchased low after 5 years. For joint-venture, funding is not a concern for a couple of years, however Novartis also has alternative to break the agreement 180 days after the signing of agreement, or, more specifically, if drugs do not record success in trials, will the deal survive.
Conatus Pharmaceuticals is a biotechnology firm focused on advancing drugs to cure liver disease. The key component of CNAT’s medications is Emricasan. This chemical compound has the prospect to lessen the activity of enzymes that lead in liver damage. The company projects to gain regulatory nod in the upcoming period for a medication administered orally.
Conatus is focusing its measures on the NASH market. It involves worsening of the liver from damaging and inflammation. Folks suffering from NASH usually suffer from many ailments like cardiovascular disease, metabolic syndrome, obesity and diabetes. Nearly 140 million people in the United States as well as Europe undergo from all types of NASH. There exist two segments of moderate to grave NASH: fibrosis, which impacts as many as 15 million folks and the acute cirrhosis segment, which affects almost 1 million people.
Conatus is focused mainly on late stage cirrhosis, considering that many types of fibrosis are extremely difficult to diagnosis. The firm projects that just 15-20% of fibrosis cases are rightly diagnosed, compared to 75-95% for cirrhosis.