Cocrystal Reports 2Q21 With Clinical Trial Milestones Cocrystal Pharmaceuticals reported 2Q21 results of a loss of $3.8 million or $(0.04) per share, compared with our expected loss of $3.1 million or (0.04) per share. Differences from our estimates were largely due to higher Research expenses for product development and lower General Expenses. The company ended the quarter with $67.1 million in cash. Based on our estimates for research programs and net losses, we expect this cash to last into 2024.COVID-19 Program Has Two Preclinical Studies Cocrystal has two programs developing protease inhibitors against the virus that causes COVID-19, SARS-CoV-2. The company plans to hold a pre-IND meeting with the FDA for CDI-45205 later this year, with an IND enabling study in 1H22 using intranasal/pulmonary delivery. A pre-IND for an oral inhibitor in is expected in 1H22, followed by an IND-enabling study.Influenza Program: The company plans to begin a Phase 1 clinical trial testing CC-12344 in 3Q21. The study is planned to be conducted in Australia, where the regulatory environment, government financial incentives, and seasonality of the southern hemisphere are favorable.Milestones Ahead: In addition to the COVID-19 and CC-12344 Influenza program, Cocrystal has a second influenza program in collaboration with Merck &Co (MRK, $78.68, Not Rated). In the first stage of the collaboration, Cocrystal developed candidates. Merck is performing further testing to select lead candidates for additional testing and clinical trials. An announcement is expected in late 2021, generating an unspecified milestone payment to Cocrystal.Conclusion: Although Cocrystal is not a financially driven company, the quarterly results were within our expectations. Importantly, the company has reported progress in its development programs. We expect the upcoming milestones for its products in development to drive the stock. We are reiterating our Outperform rating and price target of $5 per share. Read More >>