Bellerophon Therapeutics Inc (NASDAQ:BLPH) Action Is Just Noise

Bellerophon Therapeutics Inc (NASDAQ:BLPH) is all over the place at the moment. The company traded for around $.50 a share back in January, and ran up to highs of just shy of $2 a share at the beginning of this month. At the end of last week, Bellerophon dipped to $1.03, before running up to $1.4 on Monday. Heading into the Tuesday open, the company is down 10% on these latest gains.All of this is going on, but what's happening behind the charts?Well, nothing much. At least, not anything that we see as important from a medium-term valuation perspective. There is one thing that is going to dictate Bellerophon's value between now and the end of 2017, and it is data from two ongoing phase 2 trials. Anything outside of this is just noise, and is representative of shorter-term operators jumping in and out of the stock for a quick buck.As we have noted quite recently, and on a number of occasions in the past, the assets that underpin the phase 2 trials that are set to read out (and that we think will dictate value) look strong, and as such, any decline in price is an opportunity to pick up an exposure to the data readouts at a discount.In light of the recent decline, then, here is a recap of what this company is doing, and what we're looking for near-term.The lead asset is called INOPulse, and it's designed to either replace entirely, or serve as an adjuvant to, the current standard of care treatment in the pulmonary arterial hypertension (PAH) space. For those not familiar with this space, PAH occurs as a result of the arteries in the lungs becoming narrow or blocked, and this results in high blood pressure in the arteries that go from the heart to the lungs.The current SOC in the space is oxygen therapy, and this oxygen is inhaled through what's called a cannula, and delivered/stored in a large oxygen canister. It's big, heavy, and restrictive. In patients that already have restricted mobility (because of the PAH), an SOC that serves to further restrict mobility is a problem – a problem Bellerophon is trying to solve with INOPulse. It's NO delivered through a small (comparatively) unit that the user carries around strapped to their belt or otherwise, and it varies its delivery based on the individual's need.The important thing to note here is that we already know that this active compound works to treat this condition. What Bellerophon is trying to do, is prove that its unit can deliver a safe and effective dose of NO, and that's what the two phase 2 studies are set up to demonstrate. One study is looking at PH in COPD, and the other at PH in IPF.There's also a phase 3 ongoing looking at PAH directly (i.e. not associated with either COPD or IPF), but as we've said, the value right now lies in these two phase 2s.If the company can prove that INOPulse works, there is patient population waiting for the product, and very much in need of an alternative to the current standard of care. As such, markets will respond to said proof accordingly (in other words, by loading up on the company ahead of either a big-name partnership announcement of Bellerophon carrying the asset through to commercialization itself).As we've said, then, any action between now and data announcement is just noise. So when will the data hit press? The company has been pretty vague as to when it is targeting release, but we know that both trials are set to read out (to quote) during mid-2017.This paints June/July as the period to keep an eye on.The risk here is that the trials don't hit their endpoints – i.e. that INOPulse can't deliver an effective NO dose to the patients. With the data we have to-date in place, however, we view this risk as mitigated by the chances of a positive outcome.We will be updating our subscribers as soon as we know more. For the latest updates on BLPH, sign up below!Disclosure: We have no position in BLPH and have not been compensated for this article.