Synthetic Biologics Shines At 2014 ROTH Conference

Here are a few things that have resonated well with investors:

2014 ROTH Conference

Without focusing too much on the various drug indications of Synthetic's diverse pipeline, I will now list some important takeaways from Mr. Riley's 2014 ROTH Conference presentation:

1. Mr. Riley made an encouraging statement about the upcoming data release of the baboon trial of its Pertussis orphan drug candidate, SYN-005. Regarding the drug results, Riley stated "I can't tell you about it, but I'm smiling." While speculative, it's an unmistakable positive when the CEO gives a nod to investors, but we will ultimately have to wait and see for ourselves when the results are announced later this month.

2. Understanding the concern of healthcare-associated infections, Mr. Riley dedicated a significant portion of the presentation to the market potential of SYN 004. In conjunction with pre-surgical antibiotics, this oral enzyme has the potential to kill C. diff, an antibiotic-resistant bacteria that can cause life-threatening inflammation of the colon. With no other small cap biotech currently initiating C. diff drug trials, we believe that SYN 004 is the company's greatest value-driver.

3. When asked about the pipeline priority during the Roth Conference Q&A of the presentation, Mr. Riley stated that the company's "overall package… is not one to short because we got a lot of good data coming out." Again, we believe that this a promising sign.

Departure of CEO Steve H. Kanzer

It is difficult to forget the shocking images of longtime Synthetic CEO Steve H. Kanzer being hauled out of FDA Headquarters by security guards after receiving the drug rejection notice of Pipex Pharmaceutical's Coprexa candidate. Mr. Kanzer's recent departure suggests that Mr. Riley does not want his sour dealings with the FDA to jeopardize their potential NDA filing of Trimesta following positive Phase II results. Furthermore, management has taken every step necessary to facilitate the successful completion of the future NDA process, with a recent stock offering in December and even the removal of one of its original founders. Meanwhile, Kanzer's investment in the company is intact, and it seems that he doesn't want to miss out on the upcoming data readings, especially Trimesta, which he helped establish during the company's early years.

Disclosure: I am long SYN.