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Here's What The Pulmatrix Inc (NASDAQ:PULM) Hire Tells Us

Here's What The Pulmatrix Inc (NASDAQ:PULM) Hire Tells Us
Written by
Chris Sandburg
Published on
May 4, 2017
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Pulmatrix Inc (NASDAQ:PULM) is one that we have covered on numerous occasions in the past, most recently, as part of this report back at the end of March. Year to date, the company has had a bit of a roller coaster ride. As the year began, Pulmatrix went for $0.6 a share. By the beginning of February, the company traded for more than five dollars a share, but throughout the subsequent three months, dipped back down to $2.6.Late this week, management has put out a fresh HR related release, and Pulmatrix is enjoying a bit of strength. At last close, the company went for $2.85. It’s not $5 a piece, but it's still a 375% advance on the 2017 start.­Our expectations for the company going forward are that current levels will serve as a near-term floor, and that by proxy, Pulmatrix will start to generate a return for shareholders throughout the remainder of 2017 and beyond.On the back of this statement, here is a look at the company and what we're looking for near-term as supportive of our expectations.Pulmatrix has developed a technology, which it calls iSPERSE technology, and which allows for dry particle delivery that overcomes many of the limitations commonly associated with the traditional liquid delivery system.It is in development as we speak in two primary indications – one as part of a development asset called PUR1900, which the company has designed as an inhaled anti-fungal for patients with cystic fibrosis (CF) and severe asthma, and the second as an asset called PUR0200, which is a branded generic targeting a condition called chronic obstructive pulmonary disease (COPD).Again, readers looking to get clued in as to the treatments just mentioned should check out our previous coverage here. In short, however, Pulmatrix is attempting to apply its technology to these conditions in an attempt to improve on the current standard of care (SOC) options in the space. These are large potential markets and iSPERSE is well suited to both -- at least theoretically -- and this theory is backed up with plenty of legacy data, which serves as the basis of our thesis of Pulmatrix going forward. Simply put, we're looking for this date to serve as justification for Pulmatrix attracting a third-party partner, and for the third party to (initially) help fund the regulatory submissions in both the US and Europe for its lead development products, and, beyond that, foot the bill for a commercialization push.So where does the latest announcement play into this thesis?Well, the company just announced that it has appointed Ted Raad as Chief Business Officer. The guy has experience in both COPD and asthma assets in previous roles, and that's a bonus, but we are looking at one crucial sentence released as part of the press release:

"Mr. Raad will provide strategic business leadership as the company advances its programs through clinical development and partnership opportunities."

The CBO position is all about business development, and for us, this is all about securing the partnership opportunities mentioned in the above quote. If the company can get a collaboration deal in place near term, it's going to set the stage for a longer-term recovery in price per share and – by proxy – market capitalization. We believe that Raad's appointment is indicative of management's recognition of this fact, and we think that bodes well going forward.Nothing is guaranteed, of course, and there's still considerable risk associated with a position at this stage of the iSPERSE development pathway. The company can't afford to go it alone, so it needs a partner or we'll be seeing some serious dilution before the end of 2017. However, for a trader with a bit of risk tolerance, current prices might represent an opportunity to get in ahead of the long-term recovery that recent activity points towards.We will be updating our subscribers as soon as we know more. For the latest updates on PULM, sign up below!Disclosure: We have no position in PULM and have not been compensated for this article.

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