Healthcare Sector Expertise
National has developed a unique area of expertise in the healthcare sector, drawing upon the deep knowledge base of our bankers, analysts and advisors as well as practitioners in major research and medical centers around the country. National’s healthcare banking team has a track record of successful financings of R&D and clinical stage biotech and medical device companies targeting unmet medical needs in significant markets including cancer, pain management, diabetes, cardiovascular, autoimmune, neurological, and digestive conditions.
Our retail and institutional investors benefit from our team’s ability to identify and finance private and public life sciences and medical technology companies through a wide range of transaction structures including straight equity, convertibles, and notes in Stage A raises, pre-listing bridge financings, IPOs, Follow-Ons, CMPOs, and RDOs.
Healthcare Sector Coverage
National broadly covers the healthcare sector but maintains a particular focus on micro and small cap companies developing drugs to treat cancer, microbial infection, and pain. We also maintain dedicated coverage of several medical device companies.
Healthcare spending currently accounts for almost 20% of US GDP, higher than any other nation by a wide margin. The healthcare sector is expected to continue to thrive given increasing pressure on the FDA to accelerate its pace of drug application review, the JOBS Act, as well as ongoing political efforts to reduce the cost of healthcare. These dynamics have encouraged ever-higher numbers of micro and small cap healthcare companies.
We believe that through our due diligence and increasing number of healthcare investment opportunities, investors can continue to find attractive investment option in the sector.
Aerpio Pharmaceuticals, Inc. (ARPO: Buy, $15 TP)
August 14, 2018– This morning, Aerpio announced 2Q18 financial results and provided clinical and operational updates. In June, Aerpio completed a public offering of common stock that resulted in net proceeds of $48M, giving Aerpio a cash position of $68.8M, enough to fund the company comfortably into 2020 per our projections.
Akebia Therapeutics, Inc. (AKBA: Buy, $18 PT)
August 9, 2018– Yesterday, Akebia reported 2Q18 financial results and provided an update on operational and clinical developments. Akebia reported a cash position of $402M at quarter’s end, enough to fund operations into 2020, per our projections.
Assembly Biosciences, Inc. (ASMB: Buy, $70 PT)
August 9, 2018– Yesterday, Assembly released 2Q18 financial results and provided clinical and operational updates. Assembly reported a cash position of $95M, which when combined with the $155M raised in July results in a pro forma cash position of approximately $250M.
Avenue Therapeutics, Inc. (ATXI: Buy, $15 PT)
August 27, 2018– Avenue announced 2Q18 financial results and provided an update on operational and clinical developments, reporting cash of $8.9M, which is enough to fund operations into 2H18. In May, Avenue released positive results from its 409-patient Phase 3 trial of IV tramadol to treat pain following bunionectomy, a painful surgical procedure. The 50mg dose of IV tramadol met the primary endpoint of SPID48, as well as all 3 key secondary endpoints. The trial also showed 50mg doses of IV tramadol to be safe and well tolerated.
AVEO Pharmaceuticals, Inc. (AVEO: Buy, $6 PT)
August 8, 2018– Yesterday, Aveo released financial results for 2Q18 and provided an update on operational and clinical developments, reporting a cash position of $18.1M at quarter’s end, enough to fund operations into 1Q19, as per our projections.
Checkpoint Therapeutics (CKPT: Buy, $18 PT)
September 25, 2018– Checkpoint released results from the ongoing Phase 1/2 trial of CK-101, a third-generation EGFR inhibitor for non-small cell lung cancer (NSCLC). The results included data from both the dose escalation portion, in which patients received CK-101 in doses ranging from 100 mg to 1200 mg/day, and from the first dose expansion cohort, in which patients received a fixed dose of 400 mg.
Exellxis, Inc. (EXEL: Buy, $34 PT)
August 2, 2018 — Exelixis reported strong 2Q18 results, with total revenue of $186.1M and diluted EPS of $0.28, both of which beat consensus of $157M and $0.16. Net product revenues were $145.8M and are due to continued growth in sales of Cabometyx (cabozantinib) for advanced renal cell carcinoma (aRCC). Exelixis is well positioned to establish cabozantinib as the leading tyrosine kinase inhibitor (TKI) across a variety of indications for RCC and HCC. Sales for the drug increased QoQ by $11.5M (9%), and we believe sales growth will continue to be strong over the rest of 2018.
Heron Therapeutics, Inc. (HRTX: Buy, $42 PT)
August 8, 2018– This morning, Heron announced 2Q18 financial results, reporting $17.3M in net chemotherapy-induced nausea and vomiting (CINV) franchise revenue ($6.1M of Sustol and $11.2M of Cinvanti), resulting in EPS of $(0.54), compared with consensus estimates of $14M and $(0.69). Heron ended 1Q18 with a strong cash position of $423M, which is enough to fund operations to profitability, as per our projections and guided 2018 net revenue to the upper end of its $60-70M guidance range.
Innovate Biopharmaceuticals, Inc. (INNT: Buy, $27 PT)
September 7, 2018– This morning, Innovate hosted a clinical and scientific update event in New York. Innovate’s management provided guidance for the upcoming Phase 3 trials of larazotide for celiac disease and the upcoming Phase 2a trial of larazotide for non-alcoholic steatohepatitis (NASH).
Mustang Bio, Inc. (MBIO: Buy, $21 PT)
August 27, 2018– Mustang reported 2Q18 results and discussed clinical and operational developments, reporting a cash position of $47.2M, enough to fund company operations through 2019, as per our projections.
Progenics Pharmaceuticals, Inc. (PGNX: Buy, $11 PT)
September 13, 2018– Yesterday afternoon, Progenics announced topline results from the Phase 3 trial of 1404, a prostate specific membrane antigen (PSMA)-targeted imaging agent aimed at visualizing primary prostate cancer. The agent demonstrated the ability to successfully detect patients without clinically significant prostate cancer (specificity), but not the ability to successfully detect patients with clinically significant prostate cancer (sensitivity).
ProQR Therapeutics, Inc. (PRQR: Buy, $20 PT)
September 5, 2018– ProQR released positive interim results from its Phase 1/2 trial of QR-110 for Leber congenital amaurosis type 10 (LCA10). While the trial was not powered for any statistical significance, QR-110 demonstrated a remarkable improvement in vision for the majority of subjects such that these results have prompted ProQR to announce its intent to start a Phase 2/3 pivotal trial in 1H19 despite only having results from 10 patients dosed at relatively low doses for 3 months.
Scynexis, Inc. (SCYX: Buy, $10 PT)
August 10, 2018– SCYNEXIS announced 2Q18 financial results and provided an update on operational and clinical developments, reporting a cash position of $55.2M, enough to fund operations until 2020.
Stemline Therapeutics, Inc. (STML: Buy, $31 PT)
August 13, 2018– This morning, Stemline announced that the FDA had accepted for priority review the Biologics License Application (BLA) submission for its lead candidate, Elzonris (a.k.a., tagraxofusp; SL-401) for blastic plasmacytoid dendritic cell neoplasm (BPDCN). The PDUFA date is set for February 21, 2019, though Stemline anticipates approval may come sooner, given the severity of the disease, lack of available treatment options, and swiftness with which the FDA accepted the BLA.
Urogen Pharma LTD (URGN: Buy, $70 PT)
August 14, 2018– This morning, UroGen reported 2Q18 financial results and provided clinical and operational updates, reporting a cash position of $119.1M. This should fund the company into 2020, beyond the anticipated US launch of UGN-101 in 2H19. UroGen’s lead product candidate, UGN-101, is currently being evaluated in a Phase 3 trial (OLYMPUS) for low-grade upper tract urothelial cancer (LG UTUC), for which top-line data are expected in 2H18.