COCP - Cocrystal Pharma Inc. (COCP) - Q2 EPS: Transformational 12 months Ahead

Q1 2020 financial results. The company reported $19.4 million cash balance as of June 30, 2020. Net operating loss was $4.0 million for the quarter with $2.0 million research and development expenses and $2.0 million general and administrative expenses. Cocrystal reported ($0.07) EPS.Maintaining our F2020 estimates. We think the reported numbers are in line with our F2020 estimates. We are forecasting $5.6 of R&D expenses and $5.0 million of SG&A expenses. Our F2020 estimates are $8.9 million in operating expenses and ($0.17) of EPS, respectively. The next 12 months can be transformational for the company. We believe that Cocrystal’s technology platform is likely to be the main driver of the company’s future value whether via in-house development programs or partnerships over the 12 months. To that end, we advise investors to keep an eye on the upcoming IND for influenza program and lead molecule selection for coronavirus and norovirus programs. Initial clinical performances may in a way de-risk the wider platform further.Reiterating Outperform rating. We believe that the events that will likely sensitize the market to new value configuration are on tap for 2020-2021. We foresee value expansion upon additional programs advancing in the clinic. In our opinion, the current share price does not reflect the potential of Cocrystal's pipeline. We are reiterating our Outperform rating and $5 price target.Read More >>