After A 40% Sell-Off Following Good News, RXi Pharmaceuticals Is Incredibly Attractive
- RXi Pharmaceuticals is an up-and-coming biotechnology company that has recently caught my eye after losing 40% of its value in four trading sessions.
- This company works with ribonucleic acid interference technology to create a prophylactic treatment for scar and keloid prevention; currently, there are no FDA approved prophylactics of this nature.
- Phase 1 results were incredibly strong, and early Phase 2 results were, in my opinion, misinterpreted leading to an opportunity buy in RXi shares.
- The market potential is massive, as incidence of post-surgical scars occurs in anywhere between 40% to 94% of surgeries.
- The risks to the company are minimal beyond potential trial failure; the cash burn rate is well-managed, and the company has enough cash until at least until late 2015.