Here's Why Opiant Pharmaceuticals Inc (OTCMKTS:OPNT) Is Running And What's Next

This week, the CEO of Opiant Pharmaceuticals Inc (OTCMKTS:OPNT), Roger Crystal, was interviewed on Fox Business Network’s “Mornings with Maria”. At the smaller end of the biotechnology space, and as many reading will already be more than aware, these sorts of mainstream media coverage events can really draw speculative volume towards a company and– in turn – can serve up a temporary boost in market capitalization.This example was no exception.As we head into the market open on Thursday, Opiant is trading for a close to 25% premium to its Wednesday-open market capitalization on a more than 10 times multiple of its standard daily volume. It's not just this week that has brought with it some positive momentum, however. This is a company that has had a pretty good 2017 so far, currently trading for a more than 100% premium on its 2017 open price. Across July alone, Opiant is up 97%.This run, longer term of course, is about more than executives commanding screen time. Specifically, with this one, the appreciation is rooted in two core products – one already on shelves and another in development. Both of these products are very much hot topics right now in the US, which is also serving to compound the sentiment surrounding them and – by proxy – the effect each is having on market capitalization.Here is a look at both assets with a discussion of how we expect each to play into valuation going forward.The first one, the approved asset, is called Narcan. Many reading that might already be familiar with this one – it is the drug that first responders administer to individuals who have overdosed on opioids. This is the company's flagship drug and, against a backdrop of an opioid epidemic in the US, there's not been a better time to be holding the patents and commercialization rights to an asset of this type.Opiant generated a little over $9 million in revenues from Narcan during 2016 and $13 million during the three months to January 31, 2017 alone. Granted, a portion of this came from a rights sale, but given that Opiant trades for a market capitalization of just $23 million right now there's clear upside on current price if the company can continue to build on its top line.So that's the first asset and it is what accounts for the vast majority of the company's capitalization currently. The second asset, however, is more interesting to us as far as long-term growth potential is concerned.It is called Intranasal Naltrexone. Again, many are probably quite familiar with the active compound in this drug, naltrexone. It is used to tackle alcohol abuse, with its mechanism of action rooted in its ability to stop the brain from responding to alcohol (i.e. stop it from releasing endorphins on consumption). No endorphins subsequent to consumption means that the patient doesn't get the enjoyment (the psychological enjoyment, that is) from alcohol that they previously might have and, through a sort of Pavlovian conditioning type process, the drug serves to reduce consumption over time.In its current format, however, naltrexone needs to be taken in pill form and can take hours to take effect. As such, with the drug needing to be taken and to be active before alcohol consumption, dosing can sometimes be difficult.In an attempt to overcome this problem, Opiant has combined the active compound naltrexone with a proprietary technology called Intravail. Intravail is designed to make compounds available for administration intranasally, with the assumption being that said intranasal administration can speed up the time it takes for the drug to become active.As part of a phase I study, which just completed, Opiant attempted to prove that it's formulation works to do just that. We just got data from the trial in question and – as per the numbers – it works. Both cMax and tMax were reduced considerably, validating both the technology in question and its application in this formulation.This success paves the way for phase 2 trial in this indication, which should bring with it a spate of near-term catalysts that could push the stock higher between enrollment and completion.Cash on hand at last count (and April, 2017) came in at a little over $9.6 million, which should be plenty (and this assumes the company won't pick up a government grant, which is very well might) to carry out the phase 2 trial in question. This, in turn, reduces any near-term dilution risk that might otherwise be associated with an exposure.We will be updating our subscribers as soon as we know more. For the latest updates on OPNT, sign up below!Image courtesy of Jonathan Silverberg via FlickrDisclosure: We have no position in OPNT and have not been compensated for this article.