VTUS An Oversold Opportunity; Now May Be The Time To Buy

Ventrus Biosciences (NASDAQ:VTUS) released second quarter results last night, and notably, the company reported that it has $29 million in cash, enough to fund operations for the next two years, according to management. This means that investors can own the shares at a fraction of what analysts believe the company is worth, without the risk of a financing before lead asset, VEN-307, reaches potential value-creating milestones. VTUS caught a bad break in late June when its drug candidate for hemorrhoids failed to meet its primary endpoint in a Phase III trial. Ventrus immediately discontinued development of the drug and has since reigned in costs, but shares have not recovered and remain down roughly 70% since the negative results were announced. However, in May of this year, VTUS had some very good news that the stock seems to have forgotten about. (more…)