Post Earnings Coverage as Strongbridge Loss Narrowed; Acquires US Rights for KEYEVIS and Announced Equity Financing

Upcoming AWS Coverage on Acorda Therapeutics

LONDON, UK / ACCESSWIRE / January 5, 2017 / Active Wall St. announces its post-earnings coverage on Strongbridge Biopharma PLC (NASDAQ: SBBP) ("Strongbridge"). The Company released its third quarter fiscal 2016 financial results on December 23, 2016. The late-stage biotech Company, which is developing therapies for rare endocrine disorder, did not generate any revenue during the reported period. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Strongbridge Biopharma's competitors within the Biotechnology space, Acorda Therapeutics, Inc. (NASDAQ: ACOR), is estimated to report earnings on February 09, 2017. AWS will be initiating a research report on Acorda Therapeutics in the coming days.

Today, AWS is promoting its earnings coverage on SBBP; touching on ACOR. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SBBP

http://www.activewallst.com/registration-3/?symbol=ACOR

Earnings Reviewed

For the three months ended September 30, 2016, Strongbridge posted net loss attributed to ordinary shareholders of $7.6 million, or $0.36 per basic and diluted share, compared to $9.7 million, or $0.51 per basic and diluted share, for Q3 2015. For the nine months ended September 30, 2016, net loss attributed to ordinary shareholders was $32.7 million, or $1.54 per basic and diluted share, compared to $33.2 million, or $2.18 per basic and diluted share, for the same period in the prior year.

For Q3 2016, Strongbridge's Research and development expenses were $4.5 million compared to $4.1 million for the same period in the prior year. The increase was primarily attributed to expenses related to the global Phase 3 SONICS clinical trial and supporting development activities for COR-003, and compensation and related personnel costs of increased employee count. Research and development expenses were $15.9 million for the nine months ended September 30, 2016, compared to $14.3 million for the same period in the prior year.

General and administrative expenses were $3.1 million for Q3 2016 compared to $5.5 million for Q3 2015. General and administrative expenses were $11.3 million for the nine months ended September 30, 2016, compared to $18.2 million for the prior year's same quarter.

Rare Disease Portfolio Expansion

In a separate press release on December 23, 2016, Strongbridge announced that it has acquired the US rights to KEVEYIS from a subsidiary of Taro Pharmaceutical Industries Ltd ("Taro"). The product is the first and only US Food and Drug Administration (FDA)-approved product to treat hyperkalemic, hypokalemic, and related variants of Primary Periodic Paralysis, which is a group of rare hereditary disorders that causes potentially severe episodes of muscle weakness and/or paralysis. KEVEYIS has orphan drug exclusivity status in the US through August 07, 2022.

Under the terms of the purchase agreement, Strongbridge will provide Taro with upfront and deferred payments of $8.5 million in two installments. Strongbridge expects to commercially launch KEVEYIS in the US in April 2017.

SONIC Update

The global Phase 3 SONICS clinical trial evaluating COR-003 (levoketoconazole) for the treatment of endogenous Cushing's syndrome is more than two-thirds enrolled. Based upon an analysis of recent enrollment trends, Strongbridge anticipates that the study will be fully enrolled in Q2 2017, with top-line data for the primary efficacy analysis available in Q1 2018.

In October 2016, at the fourth semi-annual Data and Safety Monitoring Board (DSMB) review of the SONICS data, the DSMB recommended that the SONICS study continue as planned.

In addition, the Company plans to initiate LOGICS, a second global Phase 3 study of COR-003 for the treatment of endogenous Cushing's syndrome. The LOGICS study will supplement the long-term efficacy and safety data from the ongoing SONICS study in a randomized, double-blind, placebo-controlled study that will enroll approximately 35 patients, of which approximately two-thirds will have completed the SONICS study. LOGICS enrollment is anticipated to begin mid-year 2017 and top-line data are expected in Q3 2018.

Equity Financing worth $35 Million

Strongbridge in a separate press release on December 23, 2016, announced that the Company has entered into a definitive securities purchase agreement for $35 million equity. According to terms of the definitive agreement, the Company will issue 14,000,000 ordinary shares to the investors at a price of $2.50 per ordinary share as well as warrants to purchase 7,000,000 shares. The warrants are exercisable at a price of $2.50 per share and expire five years from the date of issuance.

The Company stated that it is also in the process of finalizing credit documentation for a $40 million credit facility, of which $20 million would be borrowed initially. Under the credit facility, the Company anticipates having access to two additional tranches of $10 million each, which would be available to the Company subject to the achievement of certain specified milestones. It is anticipated that the credit facility would mature after 48 months, provide interest-only payments initially for the first 18 months of the loan followed by an amortization period of 30 months, provide for a final payment fee equal to 8% of the amount borrowed, and bear interest at a rate equal to the sum of 8.22% plus the greater of 0.53% or the 30-day US LIBOR rate.

Cash Position

Strongbridge's pro-forma cash and cash equivalents balance as of September 30, 2016, was $77.1 million, inclusive of estimated net proceeds from the equity financing and the initial $20 million borrowing under the credit facility. The Company believes it has sufficient financial resources, excluding any additional borrowings under the credit facility, to fund planned operations at least through 2018.

Stock Performance

At the close of trading session on January 04, 2017, Strongbridge Biopharma's stock price declined 2.13% to end the day at $2.30. A total volume of 166.68 thousand shares were exchanged during the session, which was above the 3-month average volume of 25.21 thousand shares. The stock currently has a market cap of $46.76 million.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street