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. 

The current share price for Rxi Pharmaceuticals is at $1.83 per share and with the enormous pipeline it has, this provides a great risk-reward scenario for those interested in a speculative biotechnology stock. As mentioned above there are many catalysts approaching in the beginning of 2015 that we believe could value the company much higher. Some additional catalysts due in early 2015 are: 

1. Additional Results in study 1301 phase 2a trial in hypertrophic scars abdomen area - All 3 month photos from patients early 2015
2. Results from 1-month and 3-month photos for study 1402 in hypertrophic scars dealing with scars on other parts of the body early 2015
3. Results from 1-month and 3-month photos for study 1401 for keloids in early 2015
4. Company is adding an additional phase 2 product in pipeline in early 2015 as mentioned in presentation by CEO
5. Filing of IND for RXI-109 in ocular scarring - For company to be able to begin in 2015 a phase 1 ocular scarring trial
6. Pre-clinical results from macular degeneration drug either alone with anti-VEGF compound or in combination with RXI-109 in 2015
7. Pre-clinical data for Retinoblastoma (eye cancer in children) in 2015
8. In process target selection for Collagenese compound and Tyrosinase Compound in 2015 -- choosing compounds to advance into pre-clinical products