Q: After its huge drop Friday, CPH is down another 8% today. It said the failure of the clinical trials for Moberg's nail fungus medicine wouldn't impact sales or revenue "today" but how much was the market counting on this for the future? Does its failure really justify a 20% cut to CPH stock or is this way overdone?
5i Research Answer:
CPH has not quantified things directly, but in a recent conference call indicated 'MOB-015 we believe will be a very significant impactful product for the company', and 'Once launched, MOB-015 will rapidly take market share in the total $91 million market for nail fungus indication'. With $50M in total CPH sales expected in 2025, the product certainly would have been material if successful, and likely was responsible for a good portion of CPH's big stock gains this year.