Positive Study Data and Mounting Expenses for OHR Pharmaceutical Inc (NASDAQ:OHRP)

[[tagnumber 0]][[tagnumber 1]]In late March, the shares of OHR Pharmaceutical Inc (NASDAQ:OHRP) suffered a huge blow on the charts as disappointing clinical study data for its OHR–102 product candidate burnt more than 60 percent of the stock’s market value down to the ground. Less than four months later, OHRP made a striking comeback by announcing positive data on that same product, which could now allow for a full–blown phase III study later this year. As a result, OHRP’s value changed by 60 percent again. This time, however, in the opposite direction. Yet, if you think the two moves have balanced out, you might be urged to think twice.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 4]]Following the negative news on Mar. 26, OHRP opened the next trade at $3.14 and closed at $2.74 per share, down a whopping 70 percent from its previous close of $8.73/share. When the opposite move occurred on Jul. 13, the stock price surged from $2.27 to $3.69, or 62.5 percent. Nevertheless, OHRP shares remained light years away from their early–March value and it will take many more positive updates from this and other currently ongoing clinical trials before OHRP manages to fully reclaim its lost territory on the charts.[[tagnumber 2]] [[tagnumber 0]]What is evident at this stage of the company’s development cycle is the obvious lack of revenue streams due to the fact that none of its product candidates are ready to hit the market yet. The OHR–102 – a 0.2% squalamine lactate ophthalmic solution is closest to receiving an NDA. However, it will take quite a while to become a reality as it is contingent on the successful completion of two more phases in the clinical study. Considering how long it usually takes to complete one phase, we can safely assume that getting the FDA approval will hardly occur in the months to come.[[tagnumber 2]] [[tagnumber 0]]Last week, OHRP announced its earnings for its third fiscal quarter for the period ended Jun. 30, 2015. As it seems, expenses have more or less increased as a result of the advancement of the trials. Given the lack of revenue cash flows, the company is likely to raise external capital via a mix of debt and/or equity financing, which could have a dilutive effect on the stock.[[tagnumber 2]] [[tagnumber 0]]Altogether, analysts at Wall Street do not expect the company to turn profitable within a couple of years. Yet, some of them recommend the stock as a strong buy for the long haul. Provided that OHRP achieves a breakthrough with the upcoming Phase III trial for its OHR–102 drug candidate, the stock’s price will be poised for a fairly good run. In the best case scenario, that is.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]]