Veru Inc.

Veru Inc. (NASDAQ: VERU) is an oncology biopharmaceutical firm specializing in developing innovative breast and prostate cancers treatments. It creates prescription medications for benign prostatic hyperplasia (BPH), hot flashes from cancer treatment, male infertility, and innovative cancer chemotherapies.

Key Highlights

• The company reported a 43.83% increase in net revenues to USD 61.26 million in FY21 (ended September 30, 2021) compared to USD 42.59 million in FY20.
• VERU reported an increase in net income to USD 7.39 million in FY21 from a loss of USD 18.97 million during 9MFY21, due to gain on sale of PREBOOST business.
• On December 13, 2021, VERU reported that the US Food and Drug Administration (FDA) had approved ENTADFITM to treat urinary tract symptoms caused by benign prostatic hyperplasia (BPH), a condition characterized by an enlarged prostate.
• The company operates at a cash conversion cycle of 140 days in FY21 compared to the industry median of 95 days.
• The stock is currently trading below its key short-term (50-day) and long-term (200-day) DMA support levels, with the RSI Index at 32.65.
• It is leaning towards the lower band of the 52-week range of USD 5.41 to USD 24.57.
• The stock price has declined 35.38% and 47.25% in the past three and nine months.

Technical Price Chart (as of January 07, 2022). Analysis by Kalkine

Conclusion: Considering the company's fluctuating Bottomline prospects, high cash conversion days, macroeconomic factors, and technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 5.46, down 1.80% as of January 07, 2022.

*The reference data in this report has been partly sourced from REFINITIV. 

Palatin Technologies, Inc.

Palatin Technologies, Inc. (NYSE: PTN) is a biotechnology company engaged in developing drugs that affect the activity of the melanocortin and natriuretic peptide receptor systems.

Key Highlights

• The company reported net revenues of USD 159.48 thousand in Q1FY22 (ended September 30, 2021) compared to negative net revenues of USD 288.56 thousand in Q1FY21.
• However, due to increased operational expenses, PTN's net loss expanded to USD 7.11 million in Q1FY22 vs. USD 3.94 million in Q1FY21.
• As of September 30, 2021, the company had cash and cash equivalents of USD 53.42 million and no outstanding debt.
• Its Gross margin was 66.2% in Q1FY22 vs. the industry median of 85.4%.
• On December 28, 2021, PTN announced the commencement of crucial Phase 3 MELODY-1 clinical research of PL9643 in patients with dry eye disease.
• Stock is currently trading below its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bearish indicator.
• The stock is leaning towards the lower band of its 52-week range of USD 0.33 to USD 1.30.
• PTN's stock price decreased by 21.58% and 29.76% in the past six and nine months.

Technical Price Chart (as of January 07, 2022). Analysis by Kalkine

Conclusion: Considering the topline growth, long-term profitability issues, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 0.4615, down 1.81%, as of January 07, 2022.

*The reference data in this report has been partly sourced from REFINITIV.