Celator Pharmaceuticals Inc (NASDAQ:CPXX) announced that the company has been approved to sell$1,802,000 of its net operating losses and unused research and development (R&D) credits under the New Jersey Technology Business Tax Certificate Transfer Program for the year 2015, for which it expects to receive $1,675,860 in non-dilutive financing.
“We are pleased the New Jersey Economic Development Authority (NJEDA) approved Celator to participate in this program again. The more than$1.675 million strengthens our financial position and further extends the company’s cash runway into the second half of 2016 as we progress our lead product candidate, VYXEOS™, and our technology platform work with molecularly targeted agents (MTAs),” said Fred M. Powell, vice-president and chief financial officer of Celator. “We expect to have overall survival data from the Phase 3 study of VYXEOS, in patients with high-risk (secondary) acute myeloid leukemia, in the first quarter of 2016 and earlier this week we announced positive results working with MTAs. Lastly, we appreciate New Jersey’s strong support of the biotechnology industry.”
This program enables approved, unprofitable New Jersey-based technology and biotechnology businesses to sell their unused net operating loss carryovers and unused research and development credits to unaffiliated, profitable corporate taxpayers in New Jersey. This allows those technology and biotechnology businesses to turn their tax losses and credits into cash to fund equipment and facilities, and for other allowable expenditures. The NJEDA determines eligibility and the New Jersey Division of Taxation determines the value of the tax benefits. Celator has been approved to participate in the program for each of the last seven years. (Original Source)
Shares of Celator Pharmaceuticals closed yesterday at $1.7 . CPXX has a 1-year high of $3.53 and a 1-year low of $1.58. The stock’s 50-day moving average is $1.80 and its 200-day moving average is $2.14.
On the ratings front, Celator has been the subject of a number of recent research reports. In a report issued on September 24, Roth Capital analyst Joseph Pantginis maintained a Buy rating on CPXX, with a price target of $18, which implies an upside of 958.8% from current levels. Separately, on August 12, FBR’s Thomas Yip maintained a Buy rating on the stock and has a price target of $6.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Joseph Pantginis and Thomas Yip have a total average return of -2.7% and -6.6% respectively. Pantginis has a success rate of 37.5% and is ranked #3632 out of 3840 analysts, while Yip has a success rate of 42.9% and is ranked #3401.