In the past year, KemPharm, Inc. (NASDAQ:KMPH at https://www.webull.com/quote/nasdaq-kmph) has been really successful. Over the 12-month time frames KMPH is up 191% (TTM). Sadly, it seems like this stock is not going to survive at such high prices. The KMPH stock was just $4.05 per share in July last, for example. The stock was tripled to 13.60 dollars by the end of August 2020 and up to 18.72 dollars by the middle of December. Then it was a flowing blow, and it was $11.20 at the end of the year. So KMPH stock was down to a little less than 1% at today’s opening price of $10.69 per action.
Clinical stage
Investors may also influence a short-selling of this biotech stock by the various short-sellers. Recent positive news about their lead medication nominee has helped this. KemPharm is a pharmaceutical corporation of the developmental stage whose key possible product is an ADHD drug.
AZSTARYSTM was authorised to apply for a new drug (NDA) on 2 March by the Food and Drug Administration (FDA) (formerly referred to as KP415). AZSTARYS is a single day ADHD therapy product in patients 6 years old and older.
Now Worth of the Company
KemPharm revealed its recent earnings and cash flow for 2020 on March 11. It had 77.6 million dollars in cash as of March 10. In 2020, the company reported sales of $13.3 million, with just $2.4 million in Q4 revenues.
Build a Better Portfolio
According to the most recent 10-K, the firm burned 1,9 million dollars a year. This was a lot more than in 2019, which had a capital loss of $23.7 million. Still, despite earning $94 million and paying it all off, the company has no loans.
But now that NASDAQ: KMPH have $284 million in market capitalization, it is difficult to see how justifiable that appraisal is. The profitability of this medicinal product is still unclear.At least one analyst, for example, recently published a study claiming that this medication was not special. Searching Alpha has published an article which says that the stock of KMPH will probably collapse when “the momentum dies off.”
The report claims that the ADHD drug’s clearance is “exhausted” without replacing something the company’s biggest catalyst. KMPH stock continues to be a competitive short contender in the current assessment.
What to do with the stock of KMPH
At the current valuation of KMPH stock, at least one is reluctant. H.C. Wainwright has recently decreased its “neutral” NASDAQ: KMPH rating and reduced its price goal. The goal is, however, $24 per share or more than double the current offer.
The brokerage company cites questions related to the marketing expenses and royalty ratings received by KemPharm from its ADHD drug deployment. Before stock trading, you can find more from https://www.webull.com/quote/nasdaq-plug.