After Volatile Ride Ampio Positions for Rebound

Although Ampio has had a volatile few months, with three strong drugs in the pipeline, the company is positioning itself for a rebound.

IMAGE In December 2011 Ampio Pharmaceuticals’ (AMPE) stock was trading above $7 before it dropped 32% on a supposed attack by short sellers. Since then the stock has been on a steady decline; however, Ampio could be a takeover target because of the company’s drug candidates, according to SeekingAlpha.

After successful early trials for all three of its pipeline drugs, Ampio has begun negotiating with the FDA to conduct studies in the U.S. that could lead to approvals.

There are many large pharmaceutical companies that are looking at the expiration of patents, so Ampio’s three products could be very attractive for a company that needs to replace those lost patents

Ampio’s lead product candidate is Ampion, an anti-inflammatory that has a good chance of achieving blockbuster status if it can break into the market, according to SeekingAlpha.

Optina is an oral treatment for diabetic macular edema and diabetic retinopathy. So far results have been positive and Ampio halted the trial early so it could prepare to meet the FDA’s regulatory process requirements. It just expanded its patent protection for Optina to include Europe.

Lastly, there is Zertane, the most advanced of the three pipeline drugs. Zertane treats premature ejaculation (PE) and Ampio has made multiple regional partnership deals overseas. The FDA doesn’t recognize PE as a medical need, but Ampio is speaking with the agency to bring the product to the U.S. market.

According to SeekingAlpha, Ampio’s products have already been approved to treat different indications, so the path to approval should be quicker than it would be for entirely new drugs.

Right now Ampio is trading near its 52-week low, but with these pipeline products it could be positioning itself for a rebound. On Monday the stock climbed 6.71% to close at $3.18.

The information contained in this article should not be construed as investment advice or as a solicitation to buy or sell any stock.

Read more:

Top Drug Studies Left in 2012 for Investors to Watch

10 Best-Selling Cancer Drugs

The Race for an Alzheimer’s Blockbuster