Adding TSRX

I added TSRX at $5.18.

Trius Therapeutics (TSRX) is developing antibiotics. Its lead candidate is Tedizolid Phosphate which is being developed for use in acute bacterial skin and skin structure infections (ABSSSIs).

Tedizolid is a second-generation oxazolidinone. The first-generation oxazolidinone, linezolid, is marketed by Pfizer and has estimated revenues of $1.3B per year. Tedizolid has some potentially beneficial characteristics including: once-daily dosing, a shorter course of therapy, and better safety profile.

TSRX published the results of its first phase-3 Tedizolid trial (ESTABLISH-1) in December 2011. The results showed the drug meeting the primary end-point of establishing non-inferiority to linezolid when assessed by early clinical response. In addition, the drug met all of the secondary efficacy outcomes.

Trius commenced its second phase-3 trial in September 2012.  The trial concluded at the end of the year and preliminary results are expected in March. Assuming a successful trial an NDA submission should follow later in the year.

Within the last year the company has traded as high as $6.40. It closed today at $5.20. It is well funded following a secondary offering in January, which precipitated a drop from $5.42 to $4.90. It seems that there is room for some appreciation ahead of the final pivotal trial for an antibiotic with significant market potential.



One thought on “Adding TSRX

  1. Assuming continued positive Phase III read outs, and Trius’ current sub-300M market cap, it would seem to make sense for Pfizer to acquire Trius so tedizolid could be rolled out as their own, especially considering that linezolid will go generic soon. Bayer is partnered with Trius on tedizolid for Asia with U.S. and Europe still unpartnered. So you may have a situation where both Pfizer and Bayer could make a play for Trius.

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