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    Stock Alert for Alexza Pharmaceuticals Inc. (ALXA)

    Alexza Pharmaceuticals Inc. (ALXA) is a pharmaceutical company focused on the research, development and commercialization of novel, proprietary products for the acute treatment of central nervous system conditions.  The Company’s technology, the Staccato system, vaporizes unformulated drug to form a condensation aerosol that, when inhaled, allows for rapid systemic drug delivery through deep lung inhalation.  The drug is quickly absorbed through the lungs into the bloodstream, providing speed of therapeutic onset that is comparable to intravenous administration, but with greater ease, patient comfort and convenience. 

    Share Statistics (13-Dec-11)   FY

    2009

    FY

    2010

    %

    Chg

    Q3

    2010

    Q3

    2011

    %

    Chg

    Symbol ALXA Revenue, $Mn 9.51 42.88 350.9% 0.74 1.26 70.3%
    Current price $0.78 Gross marg. 100.0% 100.0% 0.0% 100.0% 100.0% 0.0%
    52wk Range: $0.51-$1.91 Oper. margin -10.9% -786.4%
    Avg Vol (3m): 562,556 Net margin -1089.8% -3.5% -99.7% -79.7% -1065.1% 1236.4%
    Market Cap. 56.27M              
    Shares Outstanding 72.14M EPS, $ -2.63 -0.03 -98.9% -0.01 -0.19 1800.0%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Alexza Pharmaceuticals Inc. (ALXA) climbed as high as $1.00, or 59%, yesterday following news that the Psychopharmacologic Drugs Advisory Committee (PDAC) of the FDA voted to recommend that ADASUVE (Staccato loxapine) be approved for use as a single dose in 24 hours when used with the FDA recommended Risk Evaluation and Mitigation Strategy (REMS), for the treatment for agitation in patients with schizophrenia or bipolar mania.

    Shares of the Mountain View, California-based drug developer have lost 24.3% in the last five days; 42.7% in the last month; and 27.1% year-to-date.

    “We view the recommendations by the PDAC today as another step forward in the development of ADASUVE,” ALXA president and CEO Thomas B. King stated in the press release.  “We appreciate the Advisory Committee’s recognition of agitation as a serious and underappreciated symptom of schizophrenia and bipolar disorder.  If approved, we believe ADASUVE represents a valuable treatment option for patients and physicians alike.  We look forward to continuing to work toward our goal of bringing ADASUVE to market in 2012.”

    ADASUVE is an anti-agitation product candidate that combines ALXA’s proprietary Staccato system with loxapine, an antipsychotic currently available in the U.S. as an oral formulation for the management of schizophrenia.  The Staccato system is a hand-held, single-dose inhaler that delivers a medication comparable to intravenous administration, but with greater ease, patient comfort and convenience.

    Shares of ALXA reversed last week’s plunge when ADASUVE was reported to pose fatal lung risk, according to an internal FDA Review.

    The stock closed the session at $0.78, a gain of $0.15 on the day, with strong volume of 12.34 million shares. Over the past 52 weeks, ALXA traded within the range of $0.51 – $1.91. It is currently below its 50-day moving average of $1.16 and below its 200-day moving average of $1.6.

    Source: http://phx.corporate-ir.net/phoenix.zhtml?c=196151&p=irol-news&nyo=0

    Financial Summary

    ALXA reported revenues of $1.3 million for the three months ended September 30, 2011, compared to $0.7 million in the three months ended September 30, 2010. Revenues for the nine months ended September 30, 2011, amounted to $3.8 million, compared to $0.7 million for the same period last year.  The revenues were related to the license agreement with Cypress Biosciences Inc., signed in the third quarter of 2010.

    The Company recorded a net loss of $13.4 million for the latest quarter, up from a net loss of $0.6 million in the comparable period last year. The net loss for the nine-month period was $30.8 million, up from a net loss of $26.9 million in the comparable period last year.

    At September 30, 2011, AXLA had consolidated cash, cash equivalents and marketable securities of $28.3 million.

    Source: http://phx.corporate-ir.net/phoenix.zhtml?c=196151&p=irol-newsArticle&ID=1627265&highlight=

    Financial Strength (13-Dec-2011)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 2.32 2.06 0.77
    Current Ratio (MRQ) 0.83 2.99 2.65 1.14
    LT Debt to Equity (MRQ) 15.10 28.43 106.96
    Total Debt to Equity (MRQ) 23.72 38.54 144.14
    Interest Coverage (TTM) -18.42 0.05 1.39 26.35

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    ALXA is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels

    The MACD for ALXA currently indicates a strong bearish signal for two reasons. First, the MACD is below the signal line, a 9-day moving average. Second, the MACD is below the critical level of 0, which implies that the underlying moving averages are trending lower.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Dec13-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Aradigm Corp. ARDM 0.12 22.90M n/a n/a 30.53 13.63
    Eli Lilly & Co. LLY 39.56 44.09B 9.12 10.93 1.83 1.94
    Alkermes plc ALKS 15.28 1.98B n/a n/a 5.41 3.82
    Drug Manufacturers – Other Median       21.35 n/a 3.39 n/a
    Alexza Pharmaceuticals Inc. ALXA 0.80 57.51M n/a n/a 4.00 4.36

    Source: Thomson Financial

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