Very nice news from Concert Pharmaceuticals on Monday March 6th. CTP-656 for cystic fibrosis nets $160 million upfront, and another $90 million in milestones for the sale to Vertex Pharmaceuticals, closing by October 31st. This deal gives Concert around $250 million (in present terms) cash on hand, with a cash runway into 2021. The focus will be CTP-543 for Alopecia Areata, and to broaden their future pipeline. With the upfront $160 million, the company will have around $11.50 per share in cash, zero debt. Below is a 60 minute chart of CNCE. The stock has gained 76% this week through Thursday.
Bottom Line:
A well timed move by management to get the cash without diluting shares at extremely undervalued prices. The future now is with CTP-543 for the initial indication of unmet need Alopecia Areata, and potentially others to follow. Thank you for reading.
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