hi guys so today i want to talk about
Kempharm Pharmaceuticals nasdaq ticker
KMPH
Kempharm is a clinical stage
pharmaceutical company engaged in the
development and discovery of prodrugs
that are designed to be an improved
version of already prescribed fda
approved products
i want to point out that i'm not a
financial advisor and this is not
financial advice
all the information in this video is
freely available and i encourage
everyone to do their own research if
thinking about investing in this company
i have invested a small portion of my
portfolio in this company and in this
video i will discuss why i think this is
a buy right now will explode soon
if you like the content hit that like
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i will make more videos on any other
companies that i'm looking to invest in
drop a comment down below on any
thoughts you have on this company or any
company you think i should take a look
at
so in this video we're going to look at
a number of things
first we're going to look at what the
company does what products they've
developed
we will look at the fda approval date
and the market size for these products
we will look at recent events that have
affected the share price of the company
and the future of that are going to
affect share price
we will look at the financial
restructuring that the company has
recently gone through
we're going to have a look at what the
analysts think about this company and
what price predictions the analysts have
for the stock of this company
we're going to talk a bit about the team
at kim farm and the contracts and
partnerships that they have
in particular we're going to talk about
the partnership aquarium the team
aquarium which i think is very
interesting
Kempharm is a clinical stage
pharmaceutical company that specializes
in the treatment of adhd
at the moment Kempharm has three adhd
products in development
the main focus of the company at the
moment and the main catalyst that is
driving the share price
is the company's product candidate kp415
they also have two other adhd products
in development
kp 484 and kp922
[Music]
both of these products will hit
milestones at various stages of 2021.
should kp 405 get fda approval then the
likely scenario
is that kp 484 will also get
fda approval kp415
treats adhd in children
while kp484 treats adhd in adults
kim from has partnered with two
companies for the commercialization of
these
products granite point capital funded by
ernesto bertorelli
this is ernesto bertorelli he's a swiss
billionaire
and corium incorporated which is a
commercial stage biopharmaceutical
company
focused on development manufacturing
commercialization of specialty
pharmaceutical products
kp415 is the main catalyst at the moment
that will drive the share price of this
company up and i expect there will be
some upward movement in the share price
between now
and its fda approval date of march the
second there's a very sizable market for
adhd treatments
so here's a press release from january
27th that's a little over
three weeks ago detailing the financial
restructuring the company has completed
so as we can see here the company had
debts
of 93 million as of the 31st of march
2018.
in december 2019 they completed phase
one of financial restructuring
they made amendments to the debt
agreements to extend the maturity dates
to march 31
2021 but also agreed to convert 18.7
million
of debt to common to common shares which
was completed
in august 2020. in december 2020 they
entered an agreement to pay at least 40
million of the debt
on the completion of an equity offering
three days later they completed a one
for 16 reverse stock split in order to
qualify for re-listing in the nasdaq
on the 8th of january kim pham was
relisted on the nasdaq and announced an
equity offering of 7.5 million shares to
650
of common stock as well as issuing
warrants to purchase another 7.50
the net proceeds was approximately 46.4
million
on january 26 the company announced the
warrant holders exercised the right to
purchase
6.6 million shares and as a result the
company will
receive gross proceeds of 44 million
so after the series of events the
company has cleared all of its
outstanding debts
regained its listing in the nasdaq and
has a solid balance sheet and has
significantly extended its cash runaway
for the future
overall this puts the company in a
fantastic position compared to where it
was three years ago
okay so at the time of recording this
video kim found share price is currently
10.54 cents
the share price has been increasing
steadily since the start of february
and is currently over four dollars up on
what it was at the day of the month
the stock hit its highest point at 11
on tuesday before dropping back into the
nines
on thursday before again gaining seven
percent
on friday i expect this upward trend
will continue all through next week
right up to the pdu fa days
i think it's worth noting that that date
is significant
if kp 415 gets its fda approval
then i believe the stock will continue
upwards
however if it does not get fda approval
in my opinion the stock could crash very
quickly
okay so let's have a look at what the
analysts think
i was only able to find two price
targets set by analysts
the first price target was set by roth
capital
the first price target was set by roth
capital analyst
jonathan ashcroft who gave Kempharm a
buy rating and a 28
price target that was on the 25th of
january
the other price target i found was set
by hc wainwright
back in may 2020 at the time they
lowered their target
from 2.50 to 1.50
it is worth noting that that price
target was before
a 1 for 16 reverse stock split
in effect that 1.50 price target
was for one sixteenth of a share
or twenty four dollars for what a share
is today
since then the company has completely
restricted its finances
cleared its debts and has been relisted
on the nasdaq
so then let's move on to the Kempharm
team Kempharm is headed up by travis
mickel
travis has been the ceo of Kempharm
since 2007.
prior to that travis was at a company
called new river pharmaceuticals
while i left new river pharmaceuticals
travis and his team developed the joke
vyvanse in 2007
new river pharmaceuticals was acquired
by a uk-based company
called shire
at this point travis left and set up
confirm
flyvance has been huge for shire in fact
it has been the best return on
investment drug
since it was developed it's interesting
that it was the same team as shire
led by perry sternberg that are now at
quarium
and are working with travis to bring kp
415 to the market
new river pharmaceuticals cost shower
2.6 billion
back in 2007. if confirms kp 415 is
approved by the fda on match second
it will mark the first major improvement
since the launch of Vyvanse in 2007.
in 2003 the adhd market was 2.3 billion
the market in 2024 is estimated to be 24
billion
with a year-over-year increase
so if you've made it this far in the
video thanks i appreciate the support so
much
drop me a like and subscribe to the
channel and let's make some money
so in conclusion where do i see the
price tag for this company in the coming
weeks?
well i think this company has a lot to
offer i think its products are solid
i think its research is solid but
everything hinges on the fda approval
i think if they get the fda approval for
kp 415
then they will also get the approval for
the other drugs
and if they do not get approval for four
or five
it might be unlikely for the other
jurors also
in the very short term i totally expect
share price of this company will global
of course next week
between now and march 2nd it could
possibly reach 20
before the fda approval if kp 415
is approved i think the upward trend
will continue
until the next catalyst date however if
the company does not get fda approval i
think the knock-on effects would be
dramatic
so it is a risky investment however
currently at ten dollars i think it's
good value
it's possible with fda approval that
this share price could be multiple times
its current price within weeks
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thanks guys