WAVE.V -- Bottoming Out Undervalued Pharma/COVID-19 PlayThe most attractive part of WAVE.V is share structure: 54M total float with 41M shares held by insiders / escrowed, leaving about 13M shares free trading. The company owns a portfolio of generic oncology drugs from which it generates over $300K of quarterly revenue. $1M in cash on hand. Based on last financials, they are $83K away from generating positive cash flow and recent developments suggest they will get there sooner rather than later:
-- Received grant to develop a rapid COVID-19 saliva based test in partnership with the University of Manitoba
-- Received authorization from several EU countries to expand sales of their generic oncology drugs
-- Expecting FDA authorization in Q4 2020
At below $10M mkt cap and in the absence of any cheap paper overhang, I feel that this is a tremendous opportunity. Compare it to something like THRM.V which is developing a similar saliva-based COVID-19 test, has next to nothing in revenues, a ton of cheap paper, 3x the float and 3x the market cap, and you realize that current valuation makes no sense.
Chart suggests the stock is reversing from short term downtrend after finding bottom at .15. A doji, followed by green candle on increased volume and EMA 20 crossing above EMA 50 providing additional support at .16. Today was a pullback on lower volume that resulted in a higher low. I used it as an opportunity to pad my position.
Next catalysts that could propel sp to significantly higher levels are updates on the oncology drug sales in Europe, rapid COVID-19 test development progress and FDA approval of oncology drugs for sale/marketing in the US.
WAVE trade ideas
WAVE.V -- Pharma company offering oncology/COVID-19 drugsBig jump in this little known Canadian pharma's stock price this morning on news of market authorization of their drugs in multiple European countries. Tiny float makes for big moves up and down. Good speculative buy on pullback in the .20s, IMO.
Waverley Pharma Announces Grant of Market Authorization for Pemetrexed and Bortezomib in Multiple European Countries
WINNIPEG, MB, July 30, 2020 /CNW/ - Waverley Pharma Inc. ("Waverley Pharma" or the "Company") (TSXV: WAVE), an emerging Canadian pharmaceutical company, is pleased to announce that its wholly owned Irish subsidiary, Waverley Pharma Europe Limited, has been granted marketing authorization for Pemetrexed and Bortezomib in multiple countries across Europe.
About Pemetrexed
Pemetrexed is an injectable chemotherapy product used in the treatment of pleural mesothelioma and non-small cell lung cancer along with other indications. The Company has obtained marketing authorization for this product in numerous countries including Belgium, the Czech Republic, Germany, Ireland, the Netherlands, and the United Kingdom and is in the process of filing for market authorization in additional countries across Europe.
About Bortezomib
Bortezomib is an injectable chemotherapy product used to treat multiple myeloma and mantle cell lymphoma along with other indications. The Company has obtained marketing authorization for this product in numerous countries including Belgium, Denmark, France, Germany, Ireland, the Netherlands, Norway, Spain, Sweden and the United Kingdom and is in the process of filing for market authorization in additional countries across Europe.
About Waverley Pharma
Waverley Pharma is an emerging pharmaceutical company focused on the development and commercialization of safe, effective, and affordable cancer therapeutics in the EU, United Kingdom and North American market. The Company, through its subsidiary, is currently selling three generic oncology products in the United Kingdom, namely capecitabine, temozolomide and erlotinib. In addition, the Company is developing two generic oncology products in Europe, namely pemetrexed and bortezomib and additional products in the United States. Waverley Pharma is committed to providing patients with affordable prescription medicines that lower healthcare costs and provide a better quality of life.