Cempra Inc. (NASDAQ:CEMP), a clinical stage pharmaceutical company, reported third-quarter 2016 financial results. Cempra reported a loss of $0.62 per share, which comes to a net loss of $32.3 million.
Cempra, Inc. CEO’s Comments
Cempra continued an exceptional 2016 with further progress in the third quarter, including FDA acceptance of our NDAs for intravenous and oral capsule formulations of solithromycin, the submission of our solithromycin MAA in Europe, publication of our IV to oral Phase 3 solithromycin study in a prestigious journal, and the announcement of exciting interim results from our Phase 2 NASH study,” said Prabhavathi Fernandes, Ph.D., president and chief executive officer of Cempra.
The company is preparing for the potential approval and 2017 launch of solithromycin and we look forward to discussing the safety and efficacy profile of solithromycin, along with the urgent and growing unmet medical need for a new macrolide antibiotic, at our advisory committee meeting next week, Fernandes added. Globe Newswire
CEMP Technical Analysis
CEMP opened trading yesterday at $23.70, which was up from the previous day’s trading close of $23.56. CEMP closed trading yesterday at $23.49 and crashed down after market to $20.03, equivalent to a 15% decrease from the closing price. Taking a look at the daily chart we can see the last time CEMP traded below these levels we have to go back to August 1st when it traded at $18.50. Taking a closer look at the daily chart we can see that before the spike down CEMP had been in an overall upward trend dating back to July 28th when it traded at $17.67. CEMP has a float of 48.92 million shares and traded 1.82 times the normal daily trading volume on Thursday. For trading purposes, I would like to see CEMP open trading on Friday below $21.15 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Cempra, Inc., a clinical-stage pharmaceutical company, focuses on developing antibiotics to meet medical needs in the treatment of bacterial infectious diseases in North America. Its lead product candidates include solithromycin (CEM-101), which is in Phase III clinical trials for the treatment of community acquired bacterial pneumonia, as well as for uncomplicated bacterial urethritis; and Taksta, an antibiotic that has completed Phase II clinical trials for refractory bone and joint infections. The company also produces novel macrolides for non-antibiotic uses, such as the treatment of chronic inflammatory diseases, endocrine diseases, and gastric motility disorders. It has collaborative research and development and license agreement with Optimer Pharmaceuticals, Inc. The company was formerly known as Cempra Holdings, LLC and changed its name to Cempra, Inc. in February 2012. Cempra, Inc. was founded in 2005 and is headquartered in Chapel Hill, North Carolina.