RegeneRx Versus Restasis: Who Hits The $2 Billion Dry-Eye Jackpot?

In Q2 2017 it generated revenue of $12.7 million, but suffered operating losses of $303 million. For the first six months of 2017 its cash from operations was -$541 million. At the end of Q2 cash on hand was $243 million, down from $1.6 billion in the year earlier period. At its current cash burn rate RegeneRx could likely go a few more quarters before needing to raise more cash. That said, Aldeyra recently raised nearly $27 million in a secondary offering. Prior to that, it had nearly $15 million in cash on hand.

I Am Betting On Both

I am currently long both stocks. If RegeneRx's Phase 3 clinical trials are successful then raising new money will likely not be a problem. Just 20% of the U.S. dry-eye market could equate to about $360 million in revenue. I believe the upside for a new entrant with a product that can perform is difficult to even quantify. I am betting on RGRX and am also long ALDX, just in case.

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