E Is OxiGene The Cheapest Biotech On The Nasdaq?

I recently initiated a long position in OxiGene (OXGN). In my view, this is a superb buying opportunity, because its market cap ($40 million) exactly equals net cash ($40 million), a feature I seldom see in biotech stocks, while its rich pipeline boasts highly promising drug candidates. If any of the multiple near-term catalysts pan out well, shares could deliver a 5X return this year. I think it’s more probable than not that the drug candidates will progress to the next phase, which should elevate the company value to whole new heights. Meanwhile, I don’t have to worry much about a sell-off because a) that just occurred, b) shares trade at cash level and c) dilution risk in the short-term is 0 because they just successfully conducted an offering with no discount (!). 

Pipeline overview

OxiGene is focused on developing innovative new therapies for cancer that address serious unmet needs. Its primary focus is developing anti-vascular drugs referred to as vascular disrupting agents (VDAs). The lead drug is called fosbretabulin, a potential treatment for ovarian and certain thyroid cancers. This drug candidate holds an Orphan Drug Designation already. VDAs are a new and highly differentiated class of anti-vascular drug that target existing tumor vasculature, leading to extensive tumor cell death. Here’s an overview of their website:

Its lead drug Fosbretabulin is about to enter Phase III

Late November, OxiGene wrapped up a successful Phase II study and presented positive results. There are a lot of numbers to digest, but it came down to this: recurrent ovarian cancer patients benefit from treatment with the combination of fosbretabulin and Avastin, and the benefit is particularly promising in the hardest-to-treat patients with platinum-resistant tumors. Based on the statistically significant end results regarding efficacy and safety, the principal investigator would like to see fosbretabulin advance into a larger phase III study. This is of course exactly what OxiGene is going after. The Phase III study should commence within a few months. 

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Disclosure: Long OXGN. Please do your due diligence before investing.

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Comments

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Dick Kaplan 4 years ago Member's comment

$OXGN looks very promising, thanks.

Dan Jackson 4 years ago Member's comment

Excellent article, but "cheap" is a relative firm. Personally, I consider it to be fairly priced:

charts.stocktwits.com/.../original_34689474.jpg

Danny Straus 4 years ago Member's comment

I disagree, after reading the above this looks like a distinct opportunity.