Ceragenix Enters Into Second License Agreement
Ceragenix Pharmaceuticals Inc. [[CGXP.OB]] announced that it entered into an exclusive evaluation and operation to license agreement with a global, multi-billion dollar healthcare company covering the use of the company’s Cerashield antimicrobial technology for a specific medical device associated with a high incidence of hospital acquired infections.
The news comes shortly after Certagenix announced a similar joint development agreement with MAST BioSurgery Inc on April 29th. While no financial figures were discussed in either of the press releases, many investors are confident that the new technology will bring in substantial licensing revenues to help drive results over the next one or two quarters.
Certagenix’s Cerashield remains in the development stages, but the technology achieved 200 days of continuous antimicrobial efficacy in testing earlier this month. The testing was focused on urinary tract infections, but the technology can be used in many medical situations where antimicrobial technology is needed to remove the chance or eliminate infections.
Cerashield has many other characteristics that make it desirable for use by medical institutions. It is relatively simple to prepare and purify, readily soluble in water, heat stable, can be stored for long periods without degradation, and capable of attaching to polymers and surfaces. The antimicrobial agents capture the properties of natural host defenses to create an effective immune response.
Last quarter, Ceragenix reported record revenues of $756,224, while its net losses narrowed from $0.42 to $0.37 per share. However, the company remains unprofitable with its liabilities exceeding its assets by more than 11 times. And with cash of just $614,457 on hand, it is very likely that the company will need to raise additional funds through debt or equity sales in the future.
In the end, Ceragenix’s recent joint development agreements both provide further validation of its technologies and create potential future revenues. However, the company did not disclose the financial terms of these agreements and remains an unprofitable development stage company. As a result, prudent investors may want to wait on the sidelines until the company can demonstrate profitability or provide a clearer picture.
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