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Scynexis: A Novel Antifungal Drug Against Life-Threatening Resistant Infections And Ridiculously Cheap Valuation

Feb. 10, 2019 11:48 PM ETSCYNEXIS, Inc. (SCYX) Stock40 Comments


  • Scynexis recently released impressive data from the open-label FURI trial in invasive candida infections.
  • The stock, which has been slaughtered in the past year, has recovered somewhat but remains ridiculously undervalued even with very conservative market share estimates.
  • A continuous flow of catalysts inluding data releases through 2019-2020 is expected to continue the upward momentum in the stock and achieve our price target.
  • I also present some takeways from a phone call with Scynexis CEO after FURI data release.
  • Reiterating Buy rating on Scynexis common stock with price target $7.50 (2-3 year time-frame).
  • Looking for more? I update all of my investing ideas and strategies to members of Vasuda Healthcare Analytics. Start your free trial today »


This is not my first article on SCYNEXIS, Inc. (Scynexis) (NASDAQ:SCYX), as readers who follow my ideas may know. I have been pounding the table on Scynexis for two years now. Unfortunately, the stock took a beating with the rest of the anti-infectives sector. The stock doubled last week after releasing the FURI trial data where they literally hit it out of the ballpark. The stock is now up 3x from its recent lows, but I believe this story is just getting started.


Scynexis is developing SCY-078, a new class of antifungal drugs, now given a brand name called Ibrexafungerp, by WHO. The company is targeting invasive fungal infections like invasive candidiasis and invasive aspergillosis as well as a more common fungal infection, vulvovaginal candidiasis.

(Scynexis: multi-timeframe common stock price chart, from TC2000)

The size of the problem, invasive candidiasis and aspergillosis:

- Invasive fungal infections are estimated to affect almost 600,000 patients worldwide every year.

- About 85% of these invasive fungal infections are caused by Candida and Aspergillus species.

- The annual incidence of invasive Candida infections worldwide is estimated at about 400,000 cases per year, and about 98,000 cases per year in the US.

- Invasive Candida infections have about 20% to 40% mortality rate.

Currently, invasive Candida infections are treated with intravenous Echinocandins like Caspofungin intravenously for about 5 to 7 days, followed by oral fluconazole for about two weeks. However, resistance to oral fluconazole is increasing.

Scynexis’ solution:

Ibrexafungerp (SCY-078) is a new class of antifungal agents called glucan synthase inhibitors. It has shown potent action against Candida and Aspergillus species, even in multi-drug resistant strains. The drug has shown activity against Candida and Aspergillus strains that are resistant to the currently available antifungal agents. Another advantage of the drug is that it has fungicidal (killing the fungi) action against Candida species

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Bhavneesh Sharma profile picture

With a robust academic background, holding an MD from Delhi University and an MBA in Finance from NYU-Stern, my journey in the medical and financial world has been diverse and enriching. My postgraduate clinical and research training was conducted at prestigious Harvard and Cornell-affiliated hospitals, laying a solid foundation for my current expertise.

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Analyst’s Disclosure: I am/we are long SCYX. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (40)

Great article! Thanks.
D.Graves profile picture
Insider purchase on 4-17 by CEO

Transaction Date Insider Name Title Buy/Sell Number of Shares Average Share Price Total Transaction Shares Held After Transaction Details
4/17/2019 Marco Taglietti CEO Buy 25,000 $1.63 $40,750.00 506,000
Bhavneesh Sharma profile picture
Small amount but doesn't hurt to see some insider buying. Probably the only company I like in anti-infectives space right now.
Bhavneesh Sharma profile picture
New York Times ran a key cover story over the weekend highlighting the growing public threat of C. Auris infection. Bullish for Scynexis (long the stock).
Bhavneesh Sharma profile picture
CARES study data in C. Auris expected at ECCMID meeting, April 13-16, key catalyst.
D.Graves profile picture
Lets hope the news is good, thanks for the update.
DeepValuePlay profile picture
Actually - the very positive data was already announced -

I think most investors missed this...
D.Graves profile picture
Thanks for the article, that sounds like a good start.
Jolene5689 profile picture
And yet they don't move
DeepValuePlay profile picture
Yeah I'm also surprised by this.
Here we go...
D.Graves profile picture
I started a position today at $1.23
Bhavneesh Sharma profile picture
They are planning LPAD application but IMO, they will first wait for CARES data this year, then submit LPAD for both invasive Candida and Candida auris infections together. (long)
Jolene5689 profile picture
If this has so much promise
Why don't they push it through approval faster
@Bavaneesh Sharma: I am also long Scyx and I speculate on an interims readout of the CARES study, too. But citing my inquiry some weeks ago to Argot Partners (which are responsible for the Scyx IR ):
“Regarding an interim readout of the CARES study, the company is not providing guidance for an interim data review at this time”
So next predictable catalyst will be the presentation at Superbugs and Superdrugs 2019 and according to Needham Analyst A. Carr ( price target 5$) maybe a detailed presentation of the Furi trial at ECCMID or ASM Microbe:
Imho Scyx is maybe the best investment opportunity in the antibiotic/ antifungal space at the moment. Good luck to All.
Bhavneesh Sharma profile picture
I agree, it is on my potential 10-bagger list.
What else do you have on your top 10 list?
Good question.
D.Graves profile picture
Thanks for the article, this has been on my watch list
Bhavneesh Sharma profile picture
CARES data is the next catalyst, it has almost runup 3x, 4x from lows. so consolidating.
Jolene5689 profile picture
Hasn't done much lately
And I just added this AM @ $1.198

Sold out my sysco position for it

SYY was long hold up 74% over 3 or more years

Great timing for a change 😏
Link I just posted is a link to today’s interview with Scynexis CEO, Dr. Taglietti...good stuff.
JDL514 profile picture
anyone with thoughts on dip this week?
DeepValuePlay profile picture
dip on no news...
it dipped to 38 cents on no news too so I'm not taking this seriously.. many catalysts in 2019.
thet0nzz profile picture
Good timing, BS. Thanks!
DeepValuePlay profile picture
Good writeup. Sums up the story pretty good.
Trading near a buck makes me nervous 😬, dilution is always a concern at these levels, so an investors 1k shares may become 100 shares , or much less due to reverse splits !! So $7.50 a share won't mean much in 2-3 years!! Long in my spec account . If anyone wants a less risky biotech , then look 👀 into ATRS , I own 3k shares .
gadzillionman, I hope I didnt misunderstand you. Reverse splits of 1 for 10, will change the share price 10x. Your total value will be the same. Dilution is possible at virtually any valuation if the company offers more shares. A reverse split with no new share offering will not dilute your holdings.
Michael Meltzer profile picture
SCYX is an excellent risk/reward opportunity for a patient investor. Has taken and will continue to take time to gain traction, but SCY-078 has a definite niche if studies continue to bear that out.
JDL514 profile picture
whats the deal with CARES data? thanks
DeepValuePlay profile picture
No news yet but it could come any time now...
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