Endonovo Therapeutics Inc (OTCMKTS:ENDV) Is A Runner To Watch
By Chris Sandburg
Posted on October 2, 2017
Sometimes it’s all about timing at the smaller end of the markets. It’s a tough thing to nail down but when you get it right you can pull a nice profit on a really quick exposure and that’s exactly what’s happened with Endonovo Therapeutics Inc (OTCMKTS:ENDV) at the end of last week.
On September 26, we published this piece highlighting Endonovo as a potential near-term runner.
This is a stock that has been beaten down this year on the back of some uncertainty surrounding some litigation issues. There’s an overview of the situation in the piece linked to above, but the long and short of it is that the company sold a bit of itself to an entity called Kodiak (or agreed to, at least) and then decided that the deal it had made undervalued it. Endonovo pulled out, Kodiak wasn’t happy about it and took the former to court.
ENDV Daily Chart
If the outcome of the court proceedings was that Kodiak was able to pick up the agreed upon share for the agreed upon price, Endonovo would essentially be admitting that it sold some of itself too cheaply; something that would no doubt put further pressure on share price.
Anyway, the litigation finished and we got an update on the situation last week. Endonovo gets its shares back and has to pay $80,000 to Kodiak. That’s probably the best outcome that the Endonovo could have hoped for.
The company ran a bit on the news but, for us, the real impact is more sentiment based – with no litigation risk in the picture, prospective shareholders could now start looking at the operational side of things as indicative of future potential.
Specifically, we said this (regarding the company’s lead clinical development programs):
“Any output from the company relating to these programs, and in particular the myocardial infarction program, has the potential to compound the current upside action we are seeing and turn the company into a real breakout stock”
That was on September 26. Fast forward to the end of the week and management put out this press release titled:
“Endonovo Therapeutics Provides Update on Pre-Clinical Studies”
We won’t go into too much detail on the release as its available at the above link, but it basically says that the Immunotronics platform on which Endonovo’s lead programs rest looks like it works in the myocardial infarction indication and that the company expects to provide final results including histology and cytokine data in the next few weeks.
This data, then, is what we are looking to as the next major catalyst for the company. We don’t think that Endonovo would put out a release highlighting a near-term data drop if the company felt that the data about to hit press was negative, so we expect the expanded results to fall in line with those that Endonovo just announced and support an advance into the clinic in the above-mentioned myocardial infarction indication.
Which brings us nicely to the second wave of major catalysts – an IND submission, approval and subsequent trial initiation.
When Endonovo gets its IND green-lighted by the FDA, the company goes from being a preclinical entity to a clinical stage biotech – an important distinction (and, by proxy, a major milestone) for companies in this space. As such, when this happens, Endonovo is really going to start picking up momentum; momentum that should then be compounded by trial news.
Keep in mind that this is – right now – preclinical biotechnology, so nothing is a sure thing. The uncertainty surrounding IND submission adds a bit of risk to the equation, as do the standard cash concerns that play an all too important role at this end of the sector.
With that said, however, we’ve seen that this one can run on updates and we expect this trend to continue as the updates become more and more important.
Check out our previous coverage of this one here.
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Disclosure: We have no position in ENDV and have not been compensated for this article.
Great article. Anyone selling right now is out
sello on 10/3/2017 5:50:49 AM
Love it. Hold on for the ride.
carp302 on 10/3/2017 6:32:08 AM