Why I'm Trading a Biotech With No Earnings, No Sales and No Cash Flows

Readers, I have been trading this name on Monday morning. As I write this, I am long, and I will freeze my position until after publication. No, I am not at the low of the day, and so far, I am just a day trader, but I think we have to look at this stock as a potential investment. 

The stock literally has no earnings, no cash flows, no sales and no balance sheet to speak of. Tharimmune (THAR) is a Bridgewater, New Jersey-headquartered biotech. The company is involved in the development of therapeutic candidates for inflammatory and immunological conditions with needs that have gone unmet.

The firm has a transmucosal film product, TH104, which is a Phase II ready candidate and an oral biologic as well as two bispecific biologics in pre-clinical development. TH104 is embedded with the active compound nalmefene onto a thin film which adheres inside of the mouth on the cheek and biodegrades. This candidate would be an ideal product, if both effective and safe for multiple liver-related and other inflammatory conditions.

Tharimmune is also developing an early-stage pipeline of novel therapeutic candidates targeting high value immune-related oncology issues. The company is currently developing antibodies, including bispecific antibodies and antibody drug conjugates, among others to address these needs.

The News

On Monday morning, Tharimmune announced a significant expansion of its intellectual portfolio for TH104. Recently granted patents will enable the company to pursue its strategy of broadening its focus for this candidate to include potentially acting as a critical countermeasure for military and first responder use against high-potency opioids.

The announcement comes after the firm received positive feedback from the FDA regarding TH104 for the prevention of respiratory and/or central nervous system distress for use by those responding to mass casualty events created by weaponized versions of drugs like fentanyl or its analogues. The firm has appointed counter-terrorism expert James Liddy to its board in order to help accelerate the company's efforts to position TH104 as a national security solution. Patents have now been granted in the U.S., Mexico, Australia and Japan. TH104 is believed to provide sustained protection and may come with a longer half-life than existing options such as Narcan.

​This chart is meaningless as an analytical tool. This is just to give you an idea of what is going on with this stock that has no sales and no income. Of course, this is speculative. Then again, if TH104 can get through clinical testing, there is a need.

One More Unrelated Thing

I am adding to my long position in Peloton Interactive PTON​ on the test of the 20-day SMA from above. My $9 target price and panic level (loss of the 50-day SMA) both still stand.

At the time of publication, Guilfoyle was long THAR and PTON equity.