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Critical Therapeutics Inc (CRTX): Too High, Too Fast?

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By Douglas A. McIntyre Published
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Share in Shares of Critical Therapeutics (CRTX) Inc are up 40% to after "the drug developer received Food and Drug Administration approval for a respiratory treatment it will market with Dey LP, an affiliate of German drug maker Merck KGaA", according to The Associated Press.

The company is tiny, with a market cap of $100 million.

The drug helps treat an ailment that can may hit between 24 and 30 million Americans, but the company’s information does indicate that it has risk factors, and the announcement has the normal disclaimers about the future of the drug and its financial benefit.

That may get to the core of the problem with relatively small pharma firms and new drug releases. In this case, there is no concrete information about what the drug is worth to the company. In the fourth quarter of last year, the company had under $3 million in revenue. Its operating loss was over $9 million.

The stock is way up now, but for how long.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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