AIT Therapeutics Inc (OTCMKTS:AITB) has been rocking the market.The company which begun trading in June this year seems to have made yet another set of wealthy people as its share price went up by over 25% in one day to close the day at $7.15, among its highest prices yet.This, coupled with the fact that the traded volumes were also on the rise, paints a picture of the market’s bullish outlook towards the future of the company.The price action stated above can be seen in the chart below: AITB Daily ChartWith the above in mind, let’s dive deeper into analyzing AITB to find out what the catalyst for such a price hike could be as well as the long-term prospects of the company.AITB: An Introductory LookAIT Therapeutics Inc was founded in 2011 as a biopharmaceutical company and had its headquarters in Ness Ziona, Israel.The company has since then been engaged in development of a single proprietary formulation of 160 parts per million of nitric oxide and delivery systems to treat respiratory infections, much to their success. They currently have a pipeline that entails a wide variety of solutions to chronic diseases such as severe bronchiolitis, cystic fibrosis related lung infections and non-tuberculosis mycobacterial infections.It has completed two Phase II trials to treat severe bronchitis and cystic fibrosis related lung infections, as well as conducted a treatment for patients with cystic fibrosis who suffer from non-tuberculosis mycobacterial infections.The latter pipeline has been accredited as the reason for their success especially given that the above diseases are chronic. However, more important is their success in the different phases as a result of the resources they have injected into research and development.Having worked their way to the top, the company is merely reaping the benefits of the derived payoffs.Recent DevelopmentsAITB, a company with four employees, has been at the forefront of ensuring that the world is rid of respiratory diseases. They have made great strides in the past to ensure that this is done and the month of November has been no different.They began the month with a release detailing their intent to acquire a global, exclusive, transferable license to the eNOGenerator and associated critical assets from NitricGen Inc. The purchase will include intellectual property, know-how, trade secrets and confidential information tied to the same trade.The system which will cost the company over $2 million in cash will see them receive an FDA approved and designated device that will bring to them higher sales globally. Moreover, the efficiency which the system works at will be a key marketing point for them going forward.This system was later that week used to treat a patient who had been suffering from cystic fibrosis using Nitric Oxide. This, in addition to proving the effectiveness of the system, went a long way in signaling to the that the investment decision made by AITB was right and backed by fact. This also postulates success within the medical community and will serve as a marketing tool for the company to the world.Finally, to what we believe to be the share price catalyst.On the 28st of November, the company will hold an update meeting on its phase two clinical trials on its drug, NO-NTM, as well as give an update on its other two key programs (pulmonary hypertension and bronchiolitis).With the market’s movement during the week, it would be safe to say that a positive result is expected from this meeting. Success on either or all of the above would signify significant revenues to the company in future, all to the benefit of the shareholders. The share price surge goes a long way in alluding to the latter.FinancialsThe company is yet to make any revenues courtesy of their inability to commercialize the drugs before approval by regulatory authorities. However, given their past successes in the trial phases, hope looms in the air at AITB as they expect success upon the conduction of the final trials which they foresee occurring in the near term.The company, in the third quarter of 2017, 3Q2017, doubled down on research and development with their expenditure rising to nearly $1.2 million from $593,000 in the previous quarter. This was coupled with a reduction in their sales, general and administrative expenses from over $2.4 million to $864,000.The above plan which seems to have carefully been crafted went a long way in ensuring that their total operating expenses fell from $3 million to $2 million, a 33% dip and a good signal that management at AITB is on top of its game.The quarter, despite such good management of costs, ended on a low note courtesy of the high interest cost. The company paid about $5 million in interest therefore going deeper into the red zone with over $7.1 million in losses, up from $2.8 million. Management still believes that the credit facility, despite being a heavy price, will be beneficial for them in the long term and, with the generation of revenues, become an easier and cheaper option for them as compared to the more expensive equity.On to some good news, the company is operating at a positive working capital base which stood at over $2.7 million. Furthermore, their operating cash flow position was bettered this quarter to close the quarter at a less negative position of $1.4 million as compared to the previous quarter’s $1.7 million.Finally, their investing activities showed about $2 million in investments.The above postulates a futuristic outlook by management who are working towards value creation for their shareholders and, going by the set trend, are about to execute this in a big way.ConclusionAITB is on a path to success and their shareholders are soon to benefit from this. Given the amount they have invested coupled with their past successes, a lot of positive feedback is to be expected from them.We will be updating our subscribers as soon as we know more. For the latest updates on AITB, sign up below!Disclosure: We have no position in AITB and have not been compensated for this article.
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