Todor Pichurov

Cocrystal Pharma Inc (OTCBB:COCP) Climbs in Double Digits

by Todor Pichurov April 4, 2016

On Friday the share price of Cocrystal Pharma Inc (OTCBB:COCP, COCP message board) caught a nice double-digit boost up the charts. By the bell COCP was at $0.76 per share, a good 10% in the green. It might be that the recent events that sent the price up from around $0.60 are still in effect.

The company published its annual report on March 15. The filing did not have much of a dramatic impact on the share price and COCP actually closed down on the day following. Here is a brief summary of the balance sheet contained in the annual:

  • $9.2 million in cash
  • $6.7 million in current liabilities
  • $78 thousand in annual revenues
  • $50 million in net loss

The company is obviously no pushover despite the significant losses that are an inevitable hurdle for any biopharma company that is still developing its products. With close to $10 million in the bank there is a lot COCP is theoretically able to do. COCP does have a significant number of products in its pipeline but the most advanced ones are in pre-clinical testing, so the road ahead is still long.

COCP caught a more sizable boost on the charts after a torrent of Form 4 filings went up. Insiders, including Dr. Phillip Frost, somewhat of a legend in biotech, CEO and chairman of Opko Health, bought up millions of COCP shares in mid-March. This seems to be what helped push the stock off its 50-day MA. Since then COCP has been trading between its 50 and 200-day moving averages.

Biotech is always difficult to analyze and gauge unless the investor has a very clear notion of the company's projects and progress and has a very good general knowledge of the broader sector it's competing in. The section of the annual report that covers risk factors associated with COCP takes up a good 30% of the entire filing and is a good read for the more cautious investor.

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