Healthcare Sector Expertise
National has developed a unique area of expertise in the healthcare sector, drawing upon the deep knowledge base of our bankers, analysts and advisors as well as practitioners in major research and medical centers around the country. National’s healthcare banking team has a track record of successful financings of R&D and clinical stage biotech and medical device companies targeting unmet medical needs in significant markets including cancer, pain management, diabetes, cardiovascular, autoimmune, neurological, and digestive conditions.
Our retail and institutional investors benefit from our team’s ability to identify and finance private and public life sciences and medical technology companies through a wide range of transaction structures including straight equity, convertibles, and notes in Stage A raises, pre-listing bridge financings, IPOs, Follow-Ons, CMPOs, and RDOs.
Healthcare Sector Coverage
National broadly covers the healthcare sector but maintains a particular focus on micro and small cap companies developing drugs to treat cancer, microbial infection, and pain. We also maintain dedicated coverage of several medical device companies.
Healthcare spending currently accounts for almost 20% of US GDP, higher than any other nation by a wide margin. The healthcare sector is expected to continue to thrive given increasing pressure on the FDA to accelerate its pace of drug application review, the JOBS Act, as well as ongoing political efforts to reduce the cost of healthcare. These dynamics have encouraged ever-higher numbers of micro and small cap healthcare companies.
We believe that through our due diligence and increasing number of healthcare investment opportunities, investors can continue to find attractive investment option in the sector.
Aerpio Pharmaceuticals, Inc. (ARPO: Buy, $15 TP)
November 7, 2018– This morning, Aerpio announced 3Q18 financial results and provided clinical and operational updates, reporting a cash position of $68.8M, enough to fund the company comfortably through 1Q20 per our projections, almost a year after the expected data readout of the TIME-2b trial for AKB-9778.
Akebia Therapeutics, Inc. (AKBA: Buy, $18 PT)
November 9, 2018–Yesterday, Akebia reported 3Q18 financial results and provided an update on operational and clinical developments. Akebia reported cash of $390M at quarter’s end, enough to fund operations into 2020, per our projections.
Assembly Biosciences, Inc. (ASMB: Buy, $70 PT)
November 8, 2018– Assembly released 3Q18 financial results and provided clinical and operational updates, reporting a cash position of$233.9M, which includes $155M raised through a public offering in July.
Avenue Therapeutics, Inc. (ATXI: Buy, $15 PT)
August 27, 2018– Avenue announced 2Q18 financial results and provided an update on operational and clinical developments, reporting cash of $8.9M, which is enough to fund operations into 2H18. In May, Avenue released positive results from its 409-patient Phase 3 trial of IV tramadol to treat pain following bunionectomy, a painful surgical procedure. The 50mg dose of IV tramadol met the primary endpoint of SPID48, as well as all 3 key secondary endpoints. The trial also showed 50mg doses of IV tramadol to be safe and well tolerated.
AVEO Pharmaceuticals, Inc. (AVEO: Neutral)
November 6, 2018– Yesterday after market, Aveo announced topline results from the TIVO-3 trial to compare tivozanib with sorafenib in advanced or metastatic renal cell carcinoma (RCC). The trial met its primary endpoint, with a statistically significant improvement in progression-free survival compared with sorafenib. No mature data were available for the secondary endpoint of overall survival (OS), but thus far OS is trending against Aveo; the full OS analysis is planned for August, 2019. Based on the results of the trial, Aveo plans to submit a NDA to the FDA in approximately 6 months, but we are concerned that the unfavorable OS trend will continue and hinder FDA approval.
Checkpoint Therapeutics (CKPT: Buy, $18 PT)
November 2, 2018– Checkpoint reported 3Q18 financial results and provided clinical and operational updates, reporting a cash position of$29.6M at the end of the quarter, which should comfortably fund the company into late 2019, as per our projections.
Exellxis, Inc. (EXEL: Buy, $34 PT)
November 2, 2018 — Exelixis reported strong 3Q18 results, with total revenue of $225.4M and diluted EPS of $0.41, both of which beat consensus of $172M and $0.19. Net product revenues were $162.9M and are due to continued growth in sales of Cabometyx (cabozantinib) for advanced renal cell carcinoma (aRCC).
Heron Therapeutics, Inc. (HRTX: Buy, $42 PT)
November 8, 2018– Heron announced 3Q18 financial results, reporting $19.8M in net chemotherapy-induced nausea and vomiting (CINV) franchise revenue ($3.4M of Sustol and $16.4M of Cinvanti), resulting in EPS of $(0.49), in line with consensus estimates of $19.8M and $(0.45). Heron ended 3Q18 with a strong cash position of $364.8M, which is enough to fund operations to profitability, as per our projections, and guided 2018 net revenue to approximately $70-72M.
Innovate Biopharmaceuticals, Inc. (INNT: Buy, $27 PT)
October 29, 2018– Today, Innovate announced released preclinical data from an established mouse model of nonalcoholic steatohepatitis (NASH), showing that larazotide acetate had a clear benefit (high statistical significance) in reducing gut barrier permeability, a known pathological abnormality in chronic liver diseases, specifically NASH. Drugs that can restrict the worsening of gut leakiness (notably reducing bacterial translocation out of the gut) during the progression of NASH have the potential to improve clinical outcomes for these patients. Complete NASH preclinical results will be presented at a major conference in 2019.
Mustang Bio, Inc. (MBIO: Buy, $21 PT)
August 27, 2018– Mustang reported 2Q18 results and discussed clinical and operational developments, reporting a cash position of $47.2M, enough to fund company operations through 2019, as per our projections.
Progenics Pharmaceuticals, Inc. (PGNX: Buy, $11 PT)
November 8, 2018– This morning, Progenics reported 3Q18 financial results. Progenics’ partner, Bausch Health Companies, reported net Relistor sales of $34.5M, which translated to $5.3M in 3Q18 royalty revenue. Progenics reported a cash position of$148.9M, including $70M from a public offering in August and an additional $4.8M from ATM transactions.
ProQR Therapeutics, Inc. (PRQR: Buy, $23 PT)
November 7, 2018– This morning, ProQR announced 2Q18 results and provided clinical and operational updates, reporting a cash position of €113.7M, enough to fund operations through the end of 2020, as per our projections.
Scynexis, Inc. (SCYX: Buy, $10 PT)
August 10, 2018– SCYNEXIS announced 2Q18 financial results and provided an update on operational and clinical developments, reporting a cash position of $55.2M, enough to fund operations until 2020.
Stemline Therapeutics, Inc. (STML: Buy, $31 PT)
November 9, 2018– Yesterday, Stemline released 3Q18 financials, provided clinical and operational updates, and reported cash of $78.5M, enough to fund operations well into 2019 as per our projections.
Urogen Pharma LTD (URGN: Buy, $70 PT)
August 14, 2018– This morning, UroGen reported 2Q18 financial results and provided clinical and operational updates, reporting a cash position of $119.1M. This should fund the company into 2020, beyond the anticipated US launch of UGN-101 in 2H19. UroGen’s lead product candidate, UGN-101, is currently being evaluated in a Phase 3 trial (OLYMPUS) for low-grade upper tract urothelial cancer (LG UTUC), for which top-line data are expected in 2H18.