Cardiovascular medicine developer Milestone Pharmaceuticals (NASDAQ:MIST) is not necessarily a famous biotechnology name among market participants. However, MIST stock is worth a look as this tiny company is making strides in an underappreciated niche area of medicine.
If you’re seriously considering taking a long position, you should fully understand the risks involved. Biotech-sector assets tend to be speculative. And, Milestone Pharmaceuticals isn’t a diversified biotech company.
In fact, this company focuses on a single disease and has just one flagship drug in its pipeline. Thus, MIST stock could either soar or flop, depending on the success of that one drug.
Consequently, it is not advisable to take a large position in MIST stock. What enterprising investors can do, though, is learn about the disease and Milestone Pharmaceuticals’ proposed solution. Then they can choose to buy a few shares and monitor the developments as the occur.
A Closer Look at MIST Stock
With the onset of the novel coronavirus, many stocks tumbled earlier this year. However, the stock really took a dive in March. We’re talking about the stock falling from $20 to $2. Even during a stock-market crash, the plunge in MIST was particularly painful.
On the other hand, there has been a partial rebound. By Aug. 14, MIST stock had retraced all the way back up to $8.55. Even with that, though, the bulls still have a lot of work to do. Their next objectives should be $10 in the near term and $15 by the end of the year.
MIST stock was above $27 briefly in 2019, so the upside potential is definitely there. The bulls should only be confident, however, if Milestone Pharmaceuticals successfully develops, garners approval for and eventually commercializes its flagship medicine.
A Biotech Firm with Heart
It’s nice to know that the company you’re investing in is not just profit-focused, but is also addressing a significant but under-addressed need in the medical community.
Milestone Pharmaceuticals’ drug, etripamil, is designed to treat the symptoms of paroxysmal supraventricular tachycardia or PSVT. This is a
condition involving very rapid heart rates, sometimes even above 200 beats per minute.
Worse yet, PSVT is known to start and stop without warning. Along with the heart palpitations, other associated symptoms include sweating, shortness of breath, chest pressure or pain, light-headedness/dizziness, fatigue, anxiety and fainting.
As the company points out, “Current acute treatment options are invasive, inconvenient, anxiety-provoking and/or costly.” Etripamil holds great promise in potentially providing a noninvasive treatment in the form of a nasal spray.
Milestone Pharmaceuticals claims to focus on “the development and commercialization of innovative cardiovascular medicines.” But let’s be honest here. Etripamil is make-or-break for this company. Investors should be aware that they’re essentially placing a wager on etripamil and not much else.
Making Progress
All of that being said, etripamil could be worth betting a small amount of your investment capital on. Not long ago, the U.S. Food and Drug Administration determined that two clinical studies “could potentially fulfill the efficacy requirement for Milestone’s New Drug Application for etripamil in patients with PSVT.”
There’s also progress being made on the fiscal front. Specifically, Milestone Pharmaceuticals raised $25 in a private placement involving pre-funded warrants.
On top of that, at the end of the second quarter it was determined that Milestone Pharmaceuticals had holdings of “cash, cash equivalents, and short-term investments” valued at “$85.4 million and 24.7 million shares outstanding.”
All in all, it’s fair to say that this little biotech company is in a decent financial position and, just as importantly, has the FDA’s approval to continue testing etripamil.
The Bottom Line
If you’re in the market for a large and diversified biotechnology name, you’ll need to look elsewhere. However, adventurous biotech traders can take a position in MIST stock and not only potentially make money, but also support a company that’s doing important clinical work.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
