Zalicus (ZLCS) shareholders will sit up once they read what a chat board poster floated over the weekend. Who that person is may never be known, but the link that individual shared will have an immediate impact on driving Zalicus's share price to a much higher level.
It was surprising to learn over the weekend of a recent presentation given at the AACR Annual Meeting 2012 held in Chicago, IL, by Novartis (NVS) Vice President and Global Head of Oncology Dr. William R. Sellers wherein he not only cites the ongoing collaborative work at Zalicus, but after viewing the presentation, Dr. Sellers makes it as "plain as day" that Zalicus is playing an integral role in the Novartis global oncology program.
Verification in Spades
Zalicus investors should consider who Dr. Sellers is. He is one of the "oncology top dogs" at Novartis. Meaning, this isn't a presentation given by a management low-level scientist, as Dr. Sellers sits at the top of the Novartis management team. Furthermore, this is definitive proof of the in-depth collaborative relationship Zalicus has with Novartis and the details of Dr. Sellers' presentation are breath-taking--no exaggeration intended. Why is because, to date, Zalicus investors have not heard a peep out of Novartis and next-to-nothing out of Zalicus about this top secret partnership. Truthfully, I think Dr. Sellers' presentation "blows the lid off" of what Zalicus's investors have been guessing about since the collaboration began in May 2009. In an article I recently published I tried to make that case -- now it is verified in spades. Zalicus is sitting dead-center in a major oncology initiative at Novartis.
Don't Let The Science Stop You
Though the presentation is very scientific, it is a must-view for Zalicus shareholders. In a nutshell, investors will learn of the virtual oncology encyclopedia (as Novartis is calling it) of drug-combinations and genetic factors, and how Zalicus's cHTS Chalice technology has been playing a significant role in that process. While you can jump ahead to about the 20 minute mark to hear Dr. Sellers' speak about the research at Zalicus, I highly recommend viewing the entire 30 minute presentation.
Value to Investors
Dr. Sellers' presentation is a window into how Zalicus is operating like an ad-hoc research unit for the global oncology program at Novartis. Given the gross under-valuation of Zalicus's share price, this information should have an exponential impact because the Market rewards companies where value like Dr. Sellers' presentation so explicitly advertises such a high-value program. After all, once everyone sees with their own eyes that Zalicus has been at the center hub of the oncology program at Novartis, it would be shocking not to see the market turn extremely bullish.
CEO Corrigan's Presentation
Meanwhile, here on Monday at the Jefferies Global Healthcare Conference, Zalicus CEO Dr. Corrigan reminded investors of our "long standing program with Novartis" ... "our on-going alliance oncology partnership with Novartis" remaining as always very guarded about what he says. Nevertheless, Dr. Sellers' presentation says it all. Zalicus is in a very enviable position.
Buy Now Because ...
While biotech investing is always risky, with the lid pulled off on the Novartis-Zalicus collaboration, investors have a remarkable opportunity to buy current shares at a bargain-basement price. However, I do anticipate a much bigger move up in the share price, so that window of opportunity may be short-lived. Here's why...
- Novartis may announce at any time an oncology drug combination citing Zalicus's efforts.
- Prednisporin at Sanofi (SNY) must be within months of entering a phase 3 clinical trial.
- Z160 sailed through phase 1 clinical trials and its two-prong phase 2A clinical trials will begin this year and Zalicus has consistently met all of its targets (rare these days among biotechs).
- Z944's phase 1 single dosing results are expected very soon and from the presentation it sounds as though the Sodium channel work for a 3rd drug candidate at Hydra is moving along.
- The odds of Synavive's success in phase 2B look very promising especially if you understand the science and how the clinical trial was designed (e.g. Synavive's primary end-point is matched against placebo, so the likelihood of success 80% or better).
Finally at today's conference where Dr. Corrigan spoke, the normally reserved leader was in rare form ending his talk noting just how bullish he is about his own company. The upside for Zalicus has begun and savvy investors, if not already invested here, should get in very soon because I foresee a major move up in the share price going into summertime.
Disclosure: I am long ZLCS. Investors buy and/or sell at their own risk. I declare that I may day-trade Zalicus shares at any time. "Long" for me means until I sell. I do not "Short" stocks.