CorMedix Inc. (NYSEMKT:CRMD) is showing strength in the market having broken above its volatile price range of between $1.38 and $1.67 a share. Fuelling interest in the stock is the company’s candidate drug neutrolin, which has the potential to be a game-changer on the treatment of catheter-related bloodstream infections.
Neutrolin is designed to reduce infection rates in hospitals and dialysis centers. The pharmaceutical company is currently enrolling patients as it eyes Phase 3 Lock-IT 100 study for the drug. With enrollment set to be complete in the fourth or first quarter of 2017, the company remains confident of reporting top-line phase 3 data in the third quarter of 2017.
CorMedix is also planning to conduct a second neutrolin Phase 3 trial in oncology patients receiving chemotherapy and hydration through a central venous catheter. Positive Phase 3 results should expand CorMedix revenue base into a multi-billion industry given the growing demand for treatments that have the potential to protect both patients and hospitals from infections.
“Our goal is to execute successfully on our Neutrolin Phase 3 program in order to announce the LOCK-IT 100 top-line data in the third quarter of 2017,” said CEO Randy Milby.
Risks At Hand
A major risk to CorMedix continued rise in the market is its performance on the earnings front. A net loss of $4.8 million in the second quarter compared to a net loss of $4.13 million last year all but continues to spook investors away from the neutrolin clinical trial. However, the company has moved to shrug off the concerns, by reiterating that the loss was mostly associated with activities around the neutrolin trial.
CorMedix Inc. (NYSEMKT:CRMD) had $38.6 million in cash and short-term investments as of the end of the second quarter compared to $30.2 million as of March 31, 2016. It now awaits to be seen if the company’s balance sheet will be adequate in financing all the upcoming clinical trials.