If you have been following the markets, you will notice a huge spike in the interest of Inhibitex Inc. (INHX). This growth is in anticipation of INHX making investors a lot of money by becoming the next "Pharmasset" (VRUS) of the biomedical field. If you do not know much about this, it is worth knowing as an investor.
INHX is a biopharmaceutical company, focuses on the development of differentiated anti-infective products to prevent or treat serious infections, primarily shingles and chronic infections caused by hepatitis C virus.
Smart money likes the company. Currently, institutions own over 63% of the firm's 102 million outstanding shares. And there is a reason for this.
The stock rose to 115% by mid-day trading when INHX reported that they saw a tremendous lowering in the amount of virus in their study. Not only that, but there were no reported adverse side effects. Hep-C is a large lucrative market and the future potential is incredible.
Now move backward in time. This has some analysts comparing Inhibitix with Pharmasset and its Hep-C drug candidate PSI-7977 in an earlier study. Like (PSI-7977), the INHX drug (INX-189) is oral don't require peginterferon and its nasty side effects. (Peginterferon is an injectable drug used for treating chronic hepatitis infections (Hep- B & C) and some cancers. It has nasty side effects like flu symptoms; insomnia; and depression just to name a few).
The potential patient-friendliness of these "next-gen" drugs could make investor enthusiasm over the sales success. This is what investors were anticipating. Look at both companies. INHX has a market value of $300 million while VRUS has a market value of close to $6 billion. This is what investors were dreaming of as they put their money in INHX.
But let me add some caution to this fairytale market move. It is possible that future clinical trial studies may not play out as well and this is not something new that happens. Brian Orelli writes an example in an article he wrote about Rexahn. Rexahn (RNN) lost close to 30% of its value last week and
Rexahan's decline stems from a failed clinical trial as well. One of the company's lead compounds, Serdaxin, failed to decrease symptoms of depression more than placebo.
INHX has been a consistent bullish stock and has stepped up predictably since 2009 when it was well below a dollar a share. At the very least, INHX deserves you audience. Do your diligent research and see if this is a stock you want to grow for you over time.