An Infectious Run

Good morning!  We have another rolling biotech stock for today.

Trius Therapeutics. Inc. (NASAQ – TSRX - $6.21) is on the verge of a major breakthrough that could prove to be very profitable for shareholders.  The biopharmaceutical Company’s primary focus is on the development and selling of antibiotics for life-threatening infections.

Trius Therapeutics’ flagship product, Tedizolid phosphate (TR-701), is an orally administrated second generation oxazolidnone that is used for the treatment of serious bacterial skin and skin structure infections, and serious gram-positive infections, including MRSA (methicillin-resistant Staphylococcus aureus). These MRSA have received a lot of notoriety recently as they part of the multi-drug-resistant organisms (MDROs) family.  MSRA infections have doubled in the last five years even by conservative estimates.  TR-701 has completed Phase III clinical development and expected to complete its second Phase III trial by the end of 1Q13.

Additionally, the Company has a license agreement with Dong-A Pharmaceutical Co., Ltd. to develop and commercialize licensed products, including tedizolid phosphate, outside of Korea; a cooperative research and development agreement with Lawrence Livermore National Security LLC for researching and developing gram-negative biodefense pathogens; a research agreement with UCSD for jointly researching antibacterial agents for combating gram-negative and gram-positive biodefense pathogens; a research contract with Lawrence Livermore National Laboratory for the development of antibiotics directed against gram negative multi-drug resistant bacterial pathogens; and a collaboration and license agreement with Bayer to develop and commercialize tedizolid phosphate in the Bayer licensed territory. 

TSRX has been on a run from $4.86 at the start of the year to current levels of over $6.00, via heavy volumes.  That tells us there is some major accumulation going on here.  The charts are very bullish and there could be a break out once the stock hits $6.50, coincidentally, one penny higher than the 52-week high.  We think that happens easily and think the stock gets to $9.00 in 2Q13.

Have a great day! 

Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours. 

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