Company’s drug to restore loss of sexual desire in women is still in trials.
BioSante Pharmaceuticals (NASDAQ: BPAX, Stock Forum) hired Deutsche Bank (NYSE: DB, Stock Forum) to explore "strategic alternatives." The stock jumped 12% late in the week. It moved to $5.85 Friday, only about $1 from its 52-week high. The company's main product is LibiGel, a testosterone gel intended to restore loss of sexual desire in women. It is still in trials, so investors have real risk if the drug is not approved.
BPAX already has a menopausal hot flash drug called Elestrin. BioSante may be a very attractive M&A target for a larger drug company. In the last quarter, it lost under $4 million.
It has $27 million in cash and short-term investments, and no debt. Unlike some biopharmas, it is not close to being out of money. If LibiGel is approved, the company has a significant value. A deal here may be done well above the current share price.
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