The potential of Epicept has been moving along at a more solid pace over the past six months than in the couple of years before that when it looked as if the company might have been on the brink of becoming a has-been or never-was.
Although the latest quarterly results showed that Ceplene has yet to return any noticeable revenue from sales in Europe thus far, this is still a company to keep on the radar.
That said, there have been fears of a delisting raised by some, but it's my opinion that investors will see another reverse split before that happens.
The company announced on Tuesday that it had secured $10.6 Million in secured debt financing, and also that it had pre-paid its remaining outstanding convertible notes.
Previously, Epicept announced that it would search for more non-dilutive means of financing, and this deal plays right into that arena.
It's possible that Ceplene will gain enough steam in Europe over the course of the next year to eighteen months to build a somewhat respectable cash flow and ease the need for outside financing, but the true money makers for Epicept might be those products that are still in the earlier stages of development.
Crolibulin is enrolled in Phase II trials as a treatment for anaplastic thyroid cancer (ATC). Azixa is also enrolled in Phase II trials for the treatment of glioblastoma multiforme (GBM) - trials being conducted by partner Myrexis - and AmiKet (formerly known as NP-1) is currently being pushed for a partnership deal.
All three of those products might have more long term potential than Ceplene.
The past couple of years were rather rough ones for Epicept, in part due to a partnership deal delay for Ceplene, but also because financing was hard to come by for small biotechs at the height of the global recession.
This most recent deal is an indication that the dark days are over and the pipelines can advance with the renewed money-flow for these small companies.
Keep an eye out for another reverse split, however, it might be best to add significantly on the back side of that event.
Disclosure: Long EPCT.
