Acasti Pharma Inc. (ACST), a biopharmaceutical company, has gained 1.27% in the premarket trading session. As a result that, the ACST stock is currently changing hands at $0.42. ACST stock suffered a decline on Friday as well, with share price dropping some 4.07% in Friday’s trading hours.
Acquisition of Grace by ACST
On Friday, ACST announced that it had completed the previously disclosed acquisition of Grace Therapeutics, Inc. (Grace) via merger. According to the company, the successful merger could make Acasti build a premium specialty pharma company, which could merely focus on rare diseases. Acasti expected that following the merger, it has enough cash on its balance sheets to provide minimum of two years of operating runway. Jan D’Alvise, Acasti’s Chief Executive Officer stated on the occasion that he believes the Grace acquisition would be truly transformative and would create new and exciting opportunities for Acasti in sizable markets with substantial unmet medical needs.
Q1 2022 financial results
On 4th of August, the ACST reported the financial results for the first quarter of fiscal year 2022. According to the details, the company bore a loss of $3.1 million from operating expenses, as compared to the loss of $4.1 million during the equivalent period of 2020. The net loss for quarter stood at $3.1 million, or $0.01 per share, while the net loss for equivalent period of 2020 stood at $4.1 million, or $0.05 per share. The total expenses (including research and development, general and administration, sales and marketing) during the quarter stood at $3.02 million, as compared to the overall expenses of $2.97 million during equivalent period of 2020. The cash and cash equivalents stood at $57.7 million, as compared to $12.1 million during same quarter one year ago.
Investigations against ACST
Recently, several law firms, including Halper Sadeh LLLP, Rigrodsky Law, Monteverde & Associates PC etc., have been actively investigating the ACST relating to its proposed merger with Grace Therapeutics. The primary focus of investigation lies on the fact that whether the ACST and its board of Directors have violated the securities law by their failure to conduct a fair process and whether the transaction is valued properly or not.
Fiscal 2021 results
On June 22nd ACST announced the business update of fiscal year 2021. According to the details, the company faced a loss of $16.4 million from operating activities during fiscal 2021, as compared to a loss of $24.4 million during fiscal 2020. The net loss for year stood at $19.7 million, or $0.17 per share, as compared to a net loss of $25.5 million or $0.30 per share in 2020. The total expenses (Research and development, Administrative and general, sales and marketing) stood at $8.7 million, as compared to $20.2 million during fiscal year 2020.
What’s ahead for ACST stock?
According to the estimates, the EPS of ACST is expected to increase by some 34% during the next fiscal year. The company is expected to post revenue of $3.15 million during next fiscal. Analysts also believe that company is expected to post its final loss in 2023, before turning to profit in 2024. Based on these and other statistics, it could be said with a confidence that ACST stock should be in the watch list of every investor.
