We continue to see plenty of chatter on social media about Claritas Pharmaceuticals so we figured we would go ahead and do a deep dive fundamental analysis on the company. But is Claritas Pharmaceuticals a good investment? Let’s take a closer look at the fundamentals and technicals to see if there is a buy opportunity here.
Claritas Pharmaceuticals (KALTD), formerly Kalytera Therapeutics, recently shifted from a CBD therapeutic company to a pharmaceutical company developing nitric oxide treatments for two indications including covid-19. The company is headquartered in San Francisco, CA. Claritas is a development stage pharmaceutical company focused on applications of nitric oxide to fight infections from vaccine-resistant covid strains. They have 2 lead compounds currently but none which are approved or for sale.
Related: 3 Pot Stocks Impacted by COVID-19
As you probably know, u is expensive to develop drug candidates. The company has reported in Q1 2021 income losses of $2.3 million with net losses of almost $14 million. Total assets were around $8 million. To fund themselves, they’ve recently turned to Obsidian Global Partners in a private placement offering with three tranches. This will work in the short term. In the longer term, the management team will have to keep searching for funding through equity financings and partnership collaborations.
Follow Stephen Goldman as he evaluates Claritas with triple moving averages, the CCI, and the Awesome Oscillator
Bottom Line: Is Claritas Pharmaceuticals a Good Investment?
Kalytera (now Claritas) entered into an agreement to acquire the Salzman Group and develop and commercialize a covid-19 drug (R-107; nitric oxide). They used 49.9% of Kalytera’s outstanding shares to do so and approved a 20:1 reverse stock split. The Salzman Group had federal funding from the United States government ($25 million USD) to develop the nitric oxide drug to help fight covid-19 and vaccine-resistant strains.
They recently announced data demonstrating the effectiveness of nitric oxide overall (R-107 is a prodrug of nitric oxide) in patients with severe covid19 pneumonia. This is great proof of concept but we think nitric oxide treatments overall are a risky one. Either way they are a long way from a having revenue from an approved drug.
Interestingly, the company requested a trading halt to the IIROC in Canada. They did so on August 18th. This isn’t atypical but definitely raises eyebrows as to their thinking on a press release to come. The Obsidian deal was also announced on the 18th of August.
Is Claritas Pharmaceuticals a Good Investment? Fundamentally and technically, we believe Claritas Pharmaceuticals is not a good investment at this time.
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