Polarityte Inc (NASDAQ:COOL), the biomedical company, keeps creeping up higher month after month. The increase in share price does not seem to stop. The share price started the year 2017 at the level of $4, but new elections to the Board of Directors and change in the company name made it go to $15. Not happy with that, the market participants pushed up the share price even more in April, when the company released the completion of a relevant merger with a tech company and the acquisition of intangible assets. Share reached $18, but the story did not end there. New announcements made the share price touch $30 recently.We saw the trajectory of the company, and noted the company to our subscribers in this article published on April 26, 2017. The share price at the time of publication was around $11. As of June 26, 2017, the share price is $27.93. This means that traders following us made approximately 153% return if an investment was made. Let's see the reasons to explain the incredible move. SourceRecent DevelopmentsOn June 8, 2017, COOL put out preclinical data that would demonstrate the usefulness of the company's main product; SkinTE™. According to the communication, this treatment "regenerated full-thickness, organized skin and hair follicles in third degree burn wounds". The news seemed to be quite relevant. The following was noted in the press release:
"The findings represent the first known successful regeneration of skin and hair in full-thickness swine wound models, the standard animal model for human skin." Source
Additionally, Denver M. Lough, M.D., Ph.D., Chairman, and CEO of COOL, noted the importance of the announcement with the following words:
"These findings using SkinTE™ demonstrate an entirely new and pragmatic system whereby Polarity has used autologous tissue to regenerate full-thickness skin, hair follicles and appendages for the treatment of burns and wounds. This is a first for regenerative medicine and validation of the Polarity regenerative tissue platforms in pre-clinical studies across a variety of species." Source
Is there a catalyst? Yes. The company will start human clinical trials to evaluate "the autologous homologous SkinTE™" in the third quarter of 2017. We believe that the data coming out from that examination will be even more relevant than the former. Hence, if the results are positive, the share price reaction may be even larger than the one seen in June 2017.Additionally, as it happened in the beginning of the year, the company keeps adding new talent. On June 21, 2017, it was put out that a new director had been elected to the Board of Advisors of COOL. His name is Wayne J. Saunders and he is Chief of Oral and Maxillofacial Surgery and Dentistry at St. Luke's University Hospital in Bethlehem, PA.SourceHe holds extensive expertise in dental implants, and maxillofacial trauma. COOL's CEO explained the new election using the following terms:
"As we develop the PolarityTE™ technology platform, we continue to leverage the experience and knowledge of our esteemed Clinical Board of Advisors, in order to produce pragmatic products with immediate clinical utility. With that goal in mind, the addition of Dr. Saunders with his experience in building a premier practice from the ground up provides us with a wealth of invaluable knowledge as we push towards rapid entry into the bone regeneration market, bolstered by his specialization in dental implants and maxillofacial trauma over the last three decades. In addition, Dr. Saunders provides a direct interface with industry and commercialization insight." Source
New large purchases may mean that the trend is not overWhen we noted the trajectory of the company, we remarked that insiders had been buying shares of the company. This fact is always a good factor. This time we checked again the purchases and could find new ones:InsiderTransactionTypeValueDateShares
SWANSON EDWARD (Officer)
Purchase at $17.23 Indirect18,418Jun 13, 20171,069
Purchase at $17.28 - $17.3 per share.Direct6,397Jun 13, 2017370
Purchase at $10 per share.Indirect100,000Jun 5, 201710,000
Purchase at $10 per share.Indirect100,000May 23, 201710,000
BEEGHLEY MICHAEL (Director)
Purchase at $10.95 per share.Indirect27,375May 2, 20172,500
Option Exercise at $4.80 per share.Direct420,000May 1, 201787,500SourceInsiders have bought shares at $10 and $17 in June. Also, they have not yet sold any of those shares.Balance sheet situation is soundIn addition, we could have a look at the balance sheet situation on April 30, 2017 when the last quarterly earnings were released. Have a look at the assets and liabilities, and note the assets/liabilities ratio:ASSETS (in thousands) April 30,2017 October 31,2017Current assets:Cash and cash equivalents $4,777 $6,523Accounts receivable65113Capitalized software development costs and license fees-50Prepaid expenses and other current assets32647Total current assets5,1686,733Property and equipment, net1,87818TOTAL ASSETS $7,046 $6,751SourceThe following are the liabilities:Current liabilities:Accounts payable and accrued expenses$1,409$1,284Warrant liability-70Total current liabilities1,4091,354Total liabilities 1,409 1,354 SourceIt is evident that the company seems to have large amount of cash to finance its future research.ConclusionIn our opinion, the preclinical data released in June, the fact that experienced professionals join the advisory Board every month, and the good financial outlook are making the share price creep up everyday. Additionally, insider purchases reinforce the bull trend.Going forward, the new trial of SkinTE™ that will take place in the third quarter may be the next catalyst. The company did not disclose when exactly the data will be released, thus we encourage market participants to check the company's website for the new incoming data. Also, investors could receive the new information about COOL by subscribing to our newsletter.We will be updating our subscribers as soon as we know more. For the latest updates on COOL, sign up below!Image courtesy of FlickrDisclosure: We have no position in COOL and have not been compensated for this article.
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