Vyteris in line for $20 million upfront deal Print E-mail
By M.E.Garza   
Wednesday, 04 August 2010 09:11

This comeback story could present a nice opportunity for traders and investors alike.

As recently as a couple of weeks ago, Vyteris, Inc. (OTC:VYTR) the manufacturer of the first FDA-approved active patch transdermal drug delivery system, and a leader in active transdermal drug delivery technology, announced the appointment of four new members to its Scientific Advisory Board (SAB). The announcement went mostly unnoticed, but it could point to some very significant catalysts and developments for a company that found itself on the ropes and being cheered against by former collaborators who may have even been hoping that the company would go under so that they could steal it's platforms.

VYTR partnered with Ferring Pharmaceuticals to develop an innovative product to treat female infertility. The goal for the infertility product was to increase pregnancy rates without painful delivery methods currently in use. In addition, the product would mimic the female body's natural rhythms of hormonal secretions, a characteristic important in the delivery of therapeutics for the treatment of infertility. The product would make it possible to administer a peptide without needles, and was being designed to deliver multiple transdermal pulses automatically, around the clock, in a painless, convenient and cost-effective manner, possibly with as little as two 12-hour patches per day. In addition to the less painful therapy, there were also potential benefits that would possibly reduce the likelihood of multiple births.

However, in December of 2009, Vyteris received notice from Ferring that they were terminating a License and Development Agreement, dated September 30, 2004.  This rocked the stability of the company and shares went on a rocky ride from highs of $1.40 to lows of $.11.

Given the termination by Ferring the company reevaluated thier business strategy and sought to continue to streamline thier operations in order to focus resources on a narrow breadth of projects geared to determine viability and/or sale and license of  their current in-house projects.

In a recent filing they also disclosed the following:

"We will also evaluate a finite number of licensing and/or acquisition opportunities in an effort to bring in a technology or product which is closer to commercialization, such as a complementary technology appropriate for Phase III testing. Our business plan will continue to evolve over the next few fiscal quarters as we evaluate in-house projects as well as review appropriate outside opportunities"

Finance industry sources lead us to believe that the Phase 2 data for the product is very strong (the exact opposite of the impression given by Ferring's withdrawal) and they insist that "it is fantastic" and "beyond expectations."  Last night, other industry sources told us that the company is very close to signing a new deal for $20 million upfront loaded with not only milestones, but also hefty royalties.

Vyteris proprietary active transdermal drug delivery (iontophoresis) is extremely unique and it delivers drugs comfortably through the skin using low-level electrical energy. This active patch technology allows precise dosing, giving physicians and patients control in the rate, dosage and pattern of drug delivery that may result in considerable therapeutic, economical, and lifestyle advantages over existing methods of drug administration

The company has 65 million shares, but only about 5 million are currently in the float. The rest are tightly held, so the stock is ready to climb higher on news.

We would advise our readers and subscribers to look for official news about data as a confirmation of these rumors. If we see that news, then we would take that as a sign that the rumored licensing deal is not far behind and very close to happening. 

Disclosure: No positions

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