E Rxi Pharmaceuticals Offers Great Risk-Reward Scenario Before Major Catalysts

Note from TM editors: This article discusses a microcap/penny stock. Such stocks are easily manipulated; please do your own due diligence.

Shares of Rxi Pharmaceuticals (RXII) have been severely undervalued for quite some time now as the company trades with a market cap of only $30 million, compared to peers in the RNAi space at the same stage of clinical testing with market caps of $500 million or more, such as Tekmira Pharmaceuticals (TKMR) or Regulus Therapeutics (RGLS). Rxi Pharmaceuticals is in a unique position in the RNAi space because it is the only RNAi company to use a technology that doesn't require a delivery vehicle to deliver the RNAi strands into the cells. This "self-delivering" technology is known as sd-rxRNA and can be applied to a multitude of diseases that require direct injection. 

Rxi Pharmaceuticals is targeting an unmet need for the treatment of scarring. More specifically it is targeting hypertrophic scars and keloids in the scarring space, where there are no FDA approved drugs currently out on the market. The company released a full set of 1-month data where the cohort 2 delayed treatment with RXI-109 performed better than placebo. In the delayed treatment cohort, Rxi injected patients with hypertrophic scars two weeks after scar removal surgery. With this initial 1-month data in mind the company decided it would do the rest of the patients the same way. 

More recently the company released two pictures in an initial 3-month result release at the 13th Annual Bio Investor Forum and it showed that RXI-109  performed better than its placebo counterpart at the 3-month time point. The rest of the 3-month pictures will be released in Q1 2015 which should be a great catalyst for the share price.The company did initiate a second study for hypertrophic scars in other parts of the body other than  the abdomen. This is just one of the many diseases the company is targeting with its self-delivering technology. 

1 2
View single page >> |

Disclosure: I am long RXII.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Charles Hall 5 years ago Member's comment

If I am not mistaken, won't RXI receive an additional $1 million dollars in capital once they file ocular scaring IND with the FDA?