Why Aradigm Corporation Is Up 22 Percent Today

11:59 11/30/2017

Today’s volume spike on Aradigm Corporation ARDM  will be on many scans overnight. The stock closed up 22 percent with an intraday high of $5. The close above the 50 day moving average could get things going for ARDM  to continue its uptrend. A break above $5 in Friday’s session would entice the bulls to join the momentum party. The spike today can be attributed to the excitement of January 11th, 2018 AdCom for ciprofloxacin dispersion and the PDUFA date of 1/26/18.

Aradigm is a specialty pharmaceutical company focused on the development and commercialization of drugs for the prevention and treatment of severe respiratory diseases.

The company however reported a third quarter loss at the beginning of the month. Net loss for the third quarter of 2017 was $3.9 million, compared to a net loss of $8.2 million in the third quarter of 2016. For the quarter ended September 30, 2017, the decrease in net loss resulted primarily from an increase in revenue of $2.7 million and a decrease in operating expenses of $1.6 million.

The Company recorded $2.7 million in revenue in the third quarter of 2017 compared to $50,000 in revenue in the third quarter of 2016. Total operating expenses for the third quarter of 2017 were $5.7 million, compared with total operating expenses of $7.3 million for the third quarter of 2016.

For the third quarter of 2017, the Company recorded $1.3 million and $1.4 million in revenue under the Grifols agreement for regulatory submission services related to the filing of the NDA, and regulatory approval services related to the NDA, respectively. As of September 30, 2017, the Company reported cash and cash equivalents of $12.6 million, which includes the receipt of the $5 million milestone payment received from Grifols S.A. in September 2017 for the achievement of the Linhaliq NDA filing.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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