March 22, 2012

Quick Hits for Thursday, March 22

Moffitt folks should speak tonight, tomorrow and the day after. The poster sessions for Toomey et al. at which they will speak and/or be available are:

The Moffitt poster will be very important to see and read. I think a copy of the poster will be available as part of one of the company's SSO-related PRs.

Both Rodman & Renshaw and Maxim Group issued psoriasis Phase 2c trial result update notes. R&R provided its note yesterday. Maxim's update came out today. Both are available via Provectus News. Both firms maintained their respective price targets of $3.00 and $3.50 per share (March 21 closing price: $0.89).

R&R's key points: The trial compared safety and efficacy of three dose levels of PH-10. The lower dose (0.002%) of PH-10 achieved the best activity among the three doses tested.

Maxim's key points: Positive PH-10 top-line Phase 2 results in Psoriasis. PV-10 is still the key catalyst.

Provectus has a new lead research analyst covering them at Maxim Group. The Maxim analyst that covered the company, Dr. Yale Jen, has moved on to ROTH Capital Partners. The current Maxim analyst is Dr. Echo Yinghui He.

PH-10 and PV-10 have a robust safety profile don't ya know! Spectacular efficacy should follow. The 2c trial results were very comparable to the 2b trial results for both efficacy and safety. Safety continues to be the mantra (Craig has previously made positive comments regarding the toxicity studies the company is running on PH-10). Think efficacy per unit safety (as much as an investment person thinks about return per unit risk): dermatology risk-reward. The value proposition relies on a combination of both parameters. I think we will see much higher efficacy with no material change in safety (i.e., adverse events) in the pivotal Phase 3 trial.

Of course, my opinion of the 2c trial results does not matter. The only opinions that matter are those of the prospective derm and derm-pharma companies thinking about licensing PH-10. Furthermore, what matters just as much is whether and how well management has made the case I outlined above, among other things, regarding efficacy and safety. Is it enough?

The spin-off process continues. With their Form D filing for Pure-ific Corporation, the company moves a step-closer to spinning off this non-core entity. I think much more information when the S-1 is filed. I have a tentative expectation for the filing as the end of the quarter.

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