In late 2014, shares of Pain Therapeutics plunged from a high of $4.25 to less than $1.75 after Pfizer ended an agreement to help it develop and market the Remoxy pain drug along with Durect Corporation.
Since then, PTIE has been greatly ignored.
However, after finding value in the stock, we would recommend it to subscribers of The Cheap Investor at $1.83 a share in the July 2015 issue. At the time, we noted:
“Pain Therapeutics is a speculative, low-priced development-stage biotech. Institutions own 53% of the shares in public hands. Even at its current low price, seven institutions still own large blocks of 1-5.7 million shares. At its current burn rate, Pain Therapeutics has several years of cash for R&D. If the Company expands on Pfizer’s research on Remoxy and receives positive news from the FDA, the stock has the potential to perform well over the next year or two.”
Months after that note, the FDA accepted the company newest New Drug Application (NDA) for the pain drug, setting a PDUFA date of September 25, 2016. We’re excited to see what happens from this point on, considering the sizable market of 100 million Americans that suffer from chronic pain annually.
The stock last traded at a high of $2.63 for a potential gain of 44%.