Yesterday (06.04.2021) I was going through COCP Investor Presentation that just got out and was impressed by some of the slides, especially the cooperation with $MRK (Merck) and the technology that could help with Covid-19. While I was on numerous calls, the notification that COCP popped 31% came up on my screen. As I have just finished my 5 calls back to back, I decided to write up on the company that may be new to many of you.
Cocrystal Pharma, Inc., is a clinical stage biotechnology company. The Company focuses on discovering and developing novel antiviral therapeutics as treatments for serious and/or chronic viral diseases. The Company focuses on developing and commercializing antiviral drug candidates for the treatment and prophylaxis of hepatitis C, influenza and norovirus. The Company uses computational methods to screen and design product candidates using its cocrystal structural information. The Company is also focused on identifying and developing nucleoside and non-nucleoside polymerase inhibitors for the treatment of Norovirus infections.
🔹️ HQ in Bothell, WA
🔹️ Market Cap of c.98M
🔹️ No Debt
🔹️ Cash at 33M with 0.8M cash burn a month in 2021
🔹️ Cash runway beyond 2022
🔹️ Short interest of 3.2% (super low)
Current FY1 Revenue projection stands at 2.4M which would be 19.17% growth. Price to Sales is around 40 and EV to Revenue at 27. Naturally, at this stage these metrics are relatively indicative and less important for a potential high growth company. Biggest Institutional Investor is Renaissance Technologies with 5.76% SO. Vanguard has 2.86%, Blackrock is third with 1.61%, Point72 has 1.46% and $MS (Morgan Stanley) 1%. That is surprisingly strong lineup of leading names investing in a company with less than 100M market cap.
🅘🅝🅥🅔🅢🅣🅜🅔🅝🅣 🅗🅘🅖🅗🅛🅘🅖🅗🅣🅢 (Source: Investment Presentation, Slide 4)
✅Applying proprietary structure-based drug design technology to develop first- and bestin-class broad-spectrum antiviral drugs
✅Large market opportunities for the treatment of acute and chronic viral diseases including seasonal and pandemic influenza, COVID-19, hepatitis C, and norovirus gastroenteritis ✅Product candidates are tested for multiple routes of delivery
✅Robust development pipeline including Merck collaboration
✅Seasoned leadership includes two Nobel laureates and biotech veterans with proven success in drug discovery and development, business and finance
✅Cost-efficient business model supported by strong cash position and clean capital structure
I have invested in this company way before when it had over 200% Upside Potential. As early as this week I have rebuilt the position, having diminished the exposure to small caps and actually selecting only those that I liked the most. What I really like about COCP is that the short interest is so low, whereas the Institutional backing is so strong. Also, we have no debt here and strong cash position until 2023 or so. They have 2 Nobel laureates on their team and have a partnership with Merck. I am not counting on them being a big winner in the Covid-19 pandemic game, however their technology may prove extremely useful especially that the virus mutates. I have just nearly doubled the position in COCP.
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