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VFC is just a guy with an opinion. VFC's Stock House brings new ideas to the table and opens discussions for a broad spectrum of investors, with a strong focus on - but not limited to - the biotech, pharmaceutical and healthcare sectors. VFC's Stock House provides research, informational and... More
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  • CDXC: ChromaDex Primed For A Rebound
    To the editors - this article has been re-written and modified. it is not a copy of the originally-submitted article.  Thanks.


    Please note, VFC's Stock House has been monetarily compensated by JSDC LLC on 29 June to cover CDXC.OB for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of this website and all articles published on my behalf is to provide investors with information, opinions, and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant.

    In light of the recent market downturn, we've been covering a wide spectrum of companies that may be trading for 'bargains', when compared to their trading prices of a few months prior. 

    Following that theme, let's take another look at ChromaDex Corp (CDXC.ob), as recent developments may have shares primed to move higher.   

    The first stages of the BluScience product line recently commenced and the line is now on sale at the GNC website, and a further commercial launch into GNC stores nationally is set to commence in September.  Investors should keep in mind, however, that the roll-out will be phased, so it should not be expected that the BluScience line will be available in all GNC stores at the same time.  Generally, the large chains phase a national roll-out regionally, with corporate stores offering the product before the franchises do.

    In following suit with the BluScience launch, ChromaDex kicked it up yet another notch by partnering with two major public relations and media awareness players who already have a solid presence in the health and wellness sector.

    It's long been expected that a media and advertising campaign would follow the commercial launch of the BluScience line, and the announcement that Alcone and the Chandler Chicco Agency have come on board to "develop market-leading communications for ChromaDex to engage customers, consumers and media" shows that President William Spengler and Co. are laying the foundation to put the previously-divised plan into motion.

    Mr. Spengler noted in Monday's press release that "We are entering into a phase of tremendous growth and have aligned ourselves with experts in the field of consumer marketing and public relations. Both Alcone and Chandler Chicco Agency are world leaders in delivering successful and integrated product launches in the health and wellness arenas."

    As previously described, but worthy of review, the BluScience line is composed of four products based on pTeroPure, a proprietary formulation of the naturally occurring antioxidant compound pterostilbene, found in blueberries. For the blueberry, pterostilbene acts as a polyphenol (antioxidant, to make it easy) and phytoalexin, a natural defense system that wards off harmful diseases, enzymes, fungi and other threats from the environment. It is similar to, but has superior qualities than, resveratrol, the phytoalexin found in grapes that has been identified as the reasoning behind the theory that red wine - in small doses - can actually lead to a healthier heart.

    It has been identified that pterostilbene may have many unique advantages over resveratrol. Most notably, it lasts longer in the body (105 minutes) than resveratrol (14 minutes) and the bio-availability (portion of the ingredient that actually enters the circulatory system) is significantly higher.

    These benefits, combined with the results of some initial studies, have demonstrated that the commercial formulation of pterostilebene could hold significant potential in enhancing a healthy lifestyle, and could be specifically beneficial to supporting a 'healthy heart' by assisting in the controlling of cholesterol, blood pressure and the reduction of anxiety.

    With the commercial launch now underway, exposing these products and potential health benefits to the consumer is the next logical step, and that's where Alcone and Chandler Chicco come into play. Both companies have successful histories and expertise is the health and wellness arena, with Alcone being identified as the "PROMO 2010 Agency of the Year" and Chandler Chicco being named the "Healthcare Agency of the Decade by the Holmes Report in 2010."

    The CDXC share price has slipped significantly along with the general market over the past few weeks, dropping to almost the dollar mark.  However, the company has initiated a commercial launch of its first national product line into a multi-billion industry with BluScience, and over the next 3-5 years, the company expects to increase annual revenues from $12 million to over $100 million.
     
    With a current market cap of under eighty million, a significant boom in the CDXC share price could be expected if the company is able to approach the expected revenue numbers over the next few years. 

    Aside from the growth expected of the BluScience brand, licensing deals such as the recently signed Cott deal is an indication that ChromaDex is intent on opening up additional avenues from which revenue can be generated.

    With the BluScience launch in its infancy stages, and with the potential for other pending catalysts to materialize over the coming quarters, a swift turnaround in the CDXC share price could be in store.

    As BluScience begins to hit more retailers' shelves later this year and into 2012, more eyes and attention will be drawn to the company and its stock, boding well for the potential to bring in new investors.  At the same time, Alcone and Chandler Chicco will be bringing the products and the ChromaDex story to the attention of consumers.

    Insiders are already heavily-invested in the CDXC stock, a reassuring sign for investors who like to see management setting the example by putting 'their money where their mouths are', and should the company's sales and revenue projections start to materialize over the next 3-5 years, then there's little doubt that the current prices will be looked at as an afterthought in the rear-view mirror.

    Keep an eye on this one, because as the business plan develops, the best should be yet to come.

    Disclosure: Long CDXC. VFC's Stock House has been compensated by JSDC LLC to cover CDXC for a period of 90 days.



    Disclosure: I am long OTCQX:CDXC.
    Tags: CDXC
    Aug 23 2:13 PM | Link | Comment!
  • CYTR: More Good News On The INNO-206 Front

    While shares of CYTR have dipped into the low forty cents range following the announcement of a direct offering last week, the new week opened up with another round of encouraging news regarding INNO-206, an experimental doxorubicin conjugate that targets cancerous tumors which was recently granted an orphan drug designation by the FDA for the indication of soft tissue sarcomas.

     

    According to Monday's press release, trial results demonstrated "the achievement of providing complete remissions in aggressively growing in vivo ovarian cancer tumors treated with a combination of low doses of INNO-206 and the commonly prescribed cancer treatment doxorubicin."

     

    Additionally, these results were published on-line in the peer-reviewed journal Investigational New Drugs (http://www.springerlink.com/content/v4286257326571wm/) with a print edition scheduled to follow.

    CytRx plans to initiate a quick turnaround into a Phase 2b clinical trial for INNO-206 as a treatment for soft tissue sarcomas later in 2011, following the Phase 1b dose escalation safety trial, from which results will be pending in a few months.

     

    Also reported in Monday's release, "Previous studies have shown INNO-206 efficacy in tumor models of breast, ovarian, small cell lung cancer, renal cell cancer and pancreatic cancers. Several other chemotherapy agents have been attached to the linker used for INNO-206, including paclitaxel, camptothecin, cisplatin and methotrexate, and may be incorporated into future clinical development by the Company."

    To date, CytRx has seven clinical trials either under way or in the works, with bafetinib and tamibarotene, the products most further along, already being tested in multiple Phase II trials.

    Last week's stock offering will net the company just under twenty million and will support the continued development of the pipeline. Stock offerings are always a threat with developing biotechs, but it should also be noted that CytRx has - in the past - found other non-dilutive ways to fill the cash coffers.

    The drop in price on heavy volume will bring added attention to CYTR, but those looking towards the long term might like what they see after this recent drop. The pipeline potential still remains.

    Disclosure: No position. VFC's Stock House has been monetarily compensated by JSDC LLC to cover CYTR for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of this website and all articles published on my behalf, is to provide investors with information, opinions, and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant. As always, each investor must conduct his or her own DD and invest accordingly.

     

     


     

    Tags: CYTR
    Aug 01 8:44 PM | Link | Comment!
  • CYTR: 'Phase II' Stocks Sometimes Require Patience
    VFC's Stock House has been monetarily compensated by JSDC LLC on to cover IMUC for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of my website and all articles published on my behalf is to provide investors with information, opinions and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant.

    A temporary price bump sparked by some positive news updates earlier this month put CYTR right back to near the eighty cent range, but not for long as shares closed Monday under seventy cents.

    While the news-fueled spike didn't sustain for too long, the quick spike on news is a good indicator that there is, in fact, some attention being paid to the progress of CytRx. That said, it could still be argued that - given the robust pipeline of products and the advancement of its Phase II pipeline - this one is still flying low, below the radars of all but the most speculative of investors.

    Many investors these days would rather look for more immediate - and more sure-thing - price movers instead of playing the "wait and see" game with companies whose products are in Phase II or earlier, like CYTR.

    There's nothing wrong that type style - each investor needs to develop his or own investing strategy and stick with it - but that's not to say that there's no payback in taking advantage of 'Phase II prices' and playing the 'buy & hold' game.

    KERX is the example I use the most in this conversation.

    Shares of Keryx Pharmaceuticals traded for right around a buck when its two chief products were early on in Phase II, but once those trials turned out to be a success and Phase III trials were initiated, the share price quickly reached five dollars-plus.

    While it might be argued that KERX is more of a solid investment after positive Phase IIs, and then will be moreso after positive Phase IIIs - assuming they are positive - there's also the argument to make that buying into Phase II stories allows for more significant percentage gains over the long runs, since you generally don't get 'speculative prices' when a company is no longer speculative.

    That's a strategy for a patient investor who has time to wait.
    Throughout the past couple of months, CytRx has released enough positive updates that may justify the accumulation game for the more patient investors who are willing to wait for the story to develop.

    A company PR released earlier this month announced that INNO-206, an experimental doxorubicin conjugate that targets cancerous tumors, is safely delivering doxorubicin at doses over four times higher than the standard in the ongoing Phase I soft tissue sarcomas trial. As the trial moves forward, CytRx will continue escalating dosage until finding the 'maximum threshold' of tolerance. It is expected that increasing the amount of doxorubicin in the bloodstream will also increase the efficacy of INNO-206's cancer-fighting abilities. Although full data are still being analyzed, a quick turnaround into a Phase IIb trial is expected, according to previously-released statements from the company.

    That news followed another dose of good news when it became public that the same product candidate had received an Orphan Drug Designation (ODD) from the FDA. The ODD grants CytRx seven years of market exclusivity for the soft tissue sarcomas indication, should INNO-206 make it to market. CytRx retains global rights to INNO-206.

    CytRx has seven clinical trials either under way or in the works for multiple product candidates, with bafetinib and tamibarotene already being tested in Phase II trials.

    The ENABLE trial, for example, is measuring bafetinib for effectiveness in high-risk B-cell chronic lymphocytic leukemia (B-CLL), while another Phase II - titled PROACT - tests bafetinib in advanced prostate cancer. A pharmacokinetic clinical trial is also being conducted for brain cancer.

    Another product, Tamibarotene, is being tested in a double-blind placebo-controlled Phase 2 trial in patients with non-small-cell lung cancer as well as in a registration clinical trial as a treatment for acute promyelocytic leukemia (NYSE:APL).

    While nothing ground-breaking enough to convince investors of assured success has hit the wires - which it never does in companies that are still developing thier pipelines - there's been enough put out there to grab investors' attention.

    The current market cap of right around 75 million is below that of some competitors with less in the pipeline than what CYTR might end up having to offer. And there's enough in this 'Phase II' pipeline to keep it interesting.

    Watch for additional updates; if Phase II results start becoming Phase III trial initiations, it might draw some new interest to CYTR.

    Disclosure: No position. VFC's Stock House has been monetarily compensated by JSDC LLC to cover CYTR for a period of 90 days. The fact that VFC has been compensated inherently indicates a strong bias on my behalf. The goal of this website and all articles published on my behalf, is to provide investors with information, opinions, and starting points about various companies across many sectors. It's up to each individual investor to decide what he or she finds relevant. As always, each investor must conduct his or her own DD and invest accordingly.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
    Tags: CYTR
    Jul 26 4:56 PM | Link | Comment!
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