Small-cap Pharmaceutical Stocks To Watch: Neothetics Inc (NASDAQ:NEOT), Alimera Sciences Inc (NASDAQ:ALIM)


Neothetics Inc (NASDAQ:NEOT) plans two Phase 2 trials in 2016

Neothetics Inc (NASDAQ:NEOT) is planning to roll out a reset Phase 2 trial and a fresh Phase 2 trial for its lead candidate LIPO-202 to begin later this year. The RESET trial will be to assess the efficacy, safety and tolerability of a modified formulation of LIP-202 for the reduction of central abdominal bulging. The fresh Phase 2 trial will be a proof of concept to see how LIPO-202 performs in tackling localized fat deposits under the chin.

The Phase 2 RESET trial

Neothetics Inc (NASDAQ:NEOT) will kick off the Phase 2 RESET trial of the modified formulation of LIPO-202 for reduction of central abdominal bulging in 3Q2016. Topline data from the study are expected in 1Q2017. The RESET trial will be placebo-controlled, randomized, double-blind study.

The main focus of the RESET trial will be to look into the safety, efficacy and tolerability of LIPO-202. The RESET trial follows unsuccessful Phase 3 studies of LIPO-202 in 2014. Although the two Phase 3 trials failed to hit the primary and secondary endpoints, they did offer Neothetics an insight on how to enhance the effectiveness of LIPO-202.

The Fresh Phase 2 study

In other Phase 2 study of LIPO-202, Neothetics Inc (NASDAQ:NEOT) will also kick off the trial in 3Q2016 and topline results are expected by the end of the year. The study will be a proof of concept to see the performance of LIPO-202 with regards to reducing the fat deposits under the chip.

Major shareholder cuts stake in Alimera Sciences Inc (NASDAQ:ALIM)

On its part, eye drug developer Alimera Sciences Inc (NASDAQ:ALIM) saw its shares shed more than 9.3% after news reached the market a major investor in the company recently trimmed its stockholding. L.P. Bavp offloaded 478,673 shares in Alimera and now owns less than 4.48million shares in the company. The transaction generated $1.24 million in total proceeds for L.P. Bavp.

Despite the move by L.P. Bavp to trim its stake in Alimera Sciences Inc (NASDAQ:ALIM), a number of institutional investors remain firmly invested in the stock with some recently boosting their positions in the stock. For example, Deerfield Management added 1.46 million shares of Alimera to its existing stake in the company. Following the purchase of addition shares of Alimera, Deerfield’s position in the company rose to 5.88 million shares.

Other institutional investors boosting position in Alimera included Credit Suisse AG, J. Goldman Co LP and Tower Research Capital (TRC). Credit Suisse scooped 3,728 shares to bring its stake in the company to 14,018. J. Goldman Co LP bought 70,300 more shares of Alimera. On its part, TRC acquired 7,297 shares in Alimera. Vanguard Group is also bullish on Alimera, purchasing 79,896 additional shares in the company to take its stake in the company to more than 1 million shares.

In the recent times, analysts have had varied views concerning Alimera Sciences Inc (NASDAQ:ALIM). Cantor Fitzgerald has a BUY rating on the stock with a 12-month price target of $5 and Cowen has an OUTPERFORM rating on the stock. However, a number of Wall Street analysts have recently downgraded the stock to a SELL from a HOLD.

Alimera Sciences Inc (NASDAQ:ALIM) posted EPS loss of $0.24 in the last quarter.


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