Stemline Therapeutics Inc (NASDAQ:STML) Could Run On This 2017 Catlayst

A couple of weeks ago, Stemline Therapeutics Inc (NASDAQ:STML) reported second quarter 2017 financials. The headline figure was a net loss of $15.5 million and – on the back of this number – the company has taken a hit. Right now, Stemline goes for $8 a share. That's a 22% discount to the company's price this time 30 days ago and a 25% year to date.Look past the headline net loss, however, and there's plenty to suggest that the declined we've seen over the last few weeks and months is set for reversal. In turn, there's credence to the suggestion that this company could be a nice opportunity at current prices in anticipation of an upside revaluation throughout the latter half of 2017.Here's what we're looking at.Stemline is a biotechnology stock that's trying to get a couple of lead assets to market as oncology therapies. The primary development asset right now is a drug called SL-401, which is a targeted therapy directed to what's called the the interleukin-3 receptor (CD123) and it's targeting the treatment of patients with what's called blastic plasmacytoid dendritic cell neoplasm (BPDCN). For those not familiar with this condition, it's a type of lymphoma that used to be known as natural killer cell lymphoma. It's an aggressive hematological malignancy that usually manifests as cutaneous lesions with or without bone marrow involvement. It's very difficult to treat and there's often nothing a physician can do for their patient unless it's caught very early.With its SL-401 asset, Stemline is trying to get a treatment on shelves that can fill this unmet need – and it's had a pretty good go at it so far. A phase II trial has recently wrapped up and data from two of three stages of this study was presented at the 22nd Congress of the European Hematology Association (EHA) in Madrid, Spain, last quarter. The data was strong and Stemline is currently working through the data from the third stage of the study with a view to reporting on it near term.And it's this data that we're looking at very near term as potentially getting the stock moving. Management noted in its latest business update that the company expects to report topline (so, the stage three of the pivotal study) at some point during the second half of this year. We're closing in on the end of the third quarter so our expectations are that the data will hit during the fourth quarter of the year, likely early fourth. There's an ongoing access cohort that's still enrolling and, assuming that the data from this initial release is positive, Stemline will combine the latter with the additional cohort numbers and use the combination to form the basis of a registration application in the US (in this instance, it's a Biologics Licensing Application (BLA).Again referencing the company's latest business update to draw a timeframe for the catalyst (the submission), management expects to have the submission in place by the first quarter of next year at the outside.At the end of the second quarter, cash on hand came in at $93.2 million. This is down from the $105.8 million reported as of March 31, 2017, reflecting a burn of a little over $12 million for the quarter. Assuming burn remains consistent (there's the potential it will decrease once the BLA is in, but let's assume it remains steady for the purposes of risk calculation), this means the company has a runway of around two years. This, in turn, removes any immediate dilution risk.We will be updating our subscribers as soon as we know more. For the latest updates on STML, sign up below!Image courtesy of FlickrDisclosure: We have no position in STML and have not been compensated for this article.