We recently covered the rally in Zosano Pharma Corporation (NASDAQ:ZSAN). As you know, this is a clinical-stage biopharmaceutical company focused on providing rapid systemic administration of therapeutics to patients using its proprietary Adhesive Dermally-Applied Microarray.

The company has just reported results. The fourth quarter continued to see strong execution in bringing M207 to market. The company had success with the enrollment in its open label, Long-Term Safety Study. Zosano now has 28 sites up and running. Zosano remains confident that it will hit itstargets of having 100 subjects on study drug by the end of the first quarter and 250 by the end of the second quarter.

But what should you do with the stock here? For that let us turn to the results:

IT was a quarter reflective of a development stage company. Zosano reported a net loss for the fourth quarter of 2017 of $7.5 million, or $3.80 per share on a basic and diluted basis, compared with a net loss of $7.7 million, or $9.23 per share on a basic and diluted basis, for the same quarter in 2016.

What about expenses? Research and development expenses for the fourth quarter of 2017 were $5.5 million, compared with $5.4 million for the same quarter in 2016. R&D expenses for the fourth quarter of 2017 and 2016 were essentially unchanged. General and administrative (G&A) expenses for the fourth quarter of 2017 was $1.8 million, compared with $2.0 million in 2016. The decrease of $0.2 million was due to the reduction in general corporate expenses.

As of December 31, 2017, Zosano had cash, cash equivalents and marketable securities of $11.7 million, debt of $6.7 million and 2.0 million common shares outstanding.

The company’s efforts to highlight efficacy data to the clinical community continues, most notably by the publication of its pivotal data in Cephalalgia in October. We are bullish on the name as the issuance of the new patent on the use of M207 to treat migraine and cluster headaches is also significant as it provides intellectual property protection through 2037. We have some concerns over cash position, but feel good about the name longer-term

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