Besides the 10-Q report for Q2 of 2011 that popped up on Aug 9, there has been nothing new on the horizon for Emisphere Technologies, Inc. (OTC:EMIS).
Indeed, neither press releases, nor paid advertising activities have popped up for the last several months. Yet, EMIS stock is alive and kicking and enjoyed a fairly successful chart run last week. Indeed, four consecutive positive movements and an aggregate value increase of a staggering 76%. No wonder that EMIS has not only surpassed the psychological $1 barrier, but also headed straight toward the $1.5 cornerstone.
Judging from the figures mentioned above, EMIS appears to have fairly stable market positions. However, the real question here is whether the company has the ability to maintain this trend by following its closed-door policy well into the future.
Using its proprietary Eligen technology, EMIS claims to have developed a number of product candidates in the drugs industry. Although no product has been launched on the market yet, a number of product candidates have been reported to be under clinical development. Considering the industry-specific nature of all drug developers, it is far from clear when exactly a finished EMIS product will hit the shelves.
As far as EMIS’s finances are concerned, the company concluded the second calendar quarter of 2011 with:
- cash reserves in excess of $1.3 million;
- negative working capital gap of $9 million;
- a quarterly operating loss of $2.26 million.
Besides the substantial working capital gap mentioned above, EMIS has accrued significant debt in the form of notes payable. Obviously, the debt will have to be repaid in due course. Until then, however, EMIS’ R&D department had better come up with a commercially viable alternative.
