Dragni Dragnev

Cocrystal Pharma Inc. (OTCBB:COCP) Sets Out Again

by Dragni Dragnev April 8, 2016

Cocrystal Pharma Inc. (OTCBB:COCP, COCP message board) made another impressive resurgence yesterday – but will it be able to keep its gains?

Well, as we've said on previous occasions, that's a very difficult judge, which is why investors need to think very carefully when making up their mind about whether or not to commit to COCP common stock.

And there are quite a few factors to consider, when you start to seriously think about it. On one hand, unlike most of the idle rabble in the OTC Markets pharmaceutical branch COCP seems to actually be making real progress with respect to becoming commercially successful.

Judging by its announcements and overall progress for its various products, it is actually taking steps towards commercial success, and not just idly burning through stacks and stacks of investor dollars.

Unfortunately, the road to profit is long and hard even if a company has already cleared all the clinical tests necessary to roll out a product, and as a matter of fact, COCP hasn't even began clinical testing for most of its products.

Meanwhile, the company's financial reports look like this:

  • Cash and cash equivalents - $9.2 million
  • Total current assets – $9.9 million
  • Total current liabilities – $6.7 million
  • Annual net cash used - $10.3 million
  • Annual net loss – $50 million

While COCP is racking loss at rates that should not be ignored, judging by those numbers, it would probably be safe to assume that COCP has enough cash on hand to finance its activities for another year, provided it continues to spend as it did during 2015.

In conclusion – while COCP looks like it is far from the worst company on the OTC Markets, but it is still in development and quite far from commercial success. Meanwhile, according to its profile page, it currently has a market cap of $556 MILLION.

Is it any wonder, then, that the ticker is currently as unstable as it is?

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