TFF Pharmaceuticals, Inc.

TFFP Details

FY20 Financial Highlights: TFF Pharmaceuticals, Inc. (NASDAQ: TFFP) is a clinical-stage biopharmaceutical company, mainly involved in the development of innovative drug products based on its patented Thin Film Freezing (TFF) technology platform. As on 12 March 2021, the company’s market capitalization stood at $398.96 million. For the year ended 31 December 2020, the company reported a net loss of $18.6 million, which includes loss of $5.9 million incurred in Q4FY20. Research and Development (R&D) expenses for the full year stood at $10.7 million, compared to $8.8 million in 2019. In Q4FY20, R&D expenses stood at $3.05 million. As at 31 December 2020, the company had a cash balance of ~$35.3 million.

FY20 Result Highlights (Source: Company Reports)

Strategic Business Development: The company’s internal development programs have witnessed positive clinical results in both Phase 1 trials for its Voriconazole Inhalation Powder program and for its Tacrolimus dry-powder program. The company has recently entered into a strategically important contract with a major government research agency for the development of dry powder versions of a suite of biological countermeasures. TFFP has entered into a feasibility and material transfer agreement with NeuroRx, Inc. to formulate and identify an optimal, long term-stable formulation of ZYESAMI™ in a dry powder form.

Key Risks: There is a risk that the company may not be able to successfully conclude clinical testing or obtain pre-market approval of its dry powder versions of any drugs. There is also a risk that the company may not be able to conclude a long-term commercial agreement with any third-party. As the stock is currently trading towards the higher band of its 52-week range of $3.44-$21.44, investors need to be more cautious about their entry and exit points.

Outlook: The company continues to work with several leading multinational pharma companies to enter into feasibility projects taking the partner’s product candidates to utilize the company’s Thin Film Freezing technology platform. The company’s partner in the cannabinoid space, PLUS Products, is planning to launch a new product toward the end of the second quarter of 2021.

Stock Recommendation: The stock of TFFP has provided a return of 26.94% in the last three months. On the technical analysis front, the stock has a support level of ~$15.88 and a resistance of ~$20.74. Considering the company’s ongoing partnership with several leading multinational pharma companies, recently entered feasibility and material transfer agreement with NeuroRx, and positive clinical results in both Phase 1 trials for its Voriconazole Inhalation Powder program and for its Tacrolimus dry-powder program, we believe that the stock has potential for further upside in the coming times. Hence, considering the aforesaid facts and key associated risks, we suggest a “Speculative Buy” recommendation on the stock at the closing price of $17.95, up by 7.16% as on 12 March 2021.

TFFP Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

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