BioLineRx: Investors Are About To Cash In On Motixafortide's Phase 3 Results

Summary

• BioLineRx Ltd. is a late-stage biopharmaceutical company focused on oncology with 2 multi-indication candidates (Phase 3 and Phase 1/2a) and 1 approved product.
• BioLineRx's pipeline and products consist of one "off-strategy" legacy commercialized Class 2a medical device (BL-5010 for skin lesions) and two clinical-stage therapeutics run as combination therapies, Motixafortide (BL-8040) and AGI-134.
• BioLineRx is unique in its low-cost strategy with a cash burn expected at -$25M for 2020 and expected Jan. 21' cash of $50M after the Israeli ADR funds.
• BioLineRx's upcoming catalysts include Motixafortide's 1Q 2021 regulatory next steps announcement and AGI-134's 2H 2021 initial efficacy results for its Phase 1/2a for Metastatic Solid Tumors.
• In summary, the author projects BioLineRx Ltd. as a "buy" at a 2-3 year price target of $8.92 (+265% upside).

Graphic Source: BioLineRx Ltd.

Introduction: What is BioLineRx?

BioLineRx Ltd. (NASDAQ:BLRX) is a late-stage biopharmaceutical company focused on oncology with their 2 candidate-1-product multi-indication pipeline. Their candidates were developed by systematically selecting, aggressively validating, and in-licensing their candidates with the highest probability of success. Their strategy then entails out-licensing their candidates for further commercialization evaluated on a case by case basis.

Founded in 2003, BioLineRx has grown to 42 employees and a smaller than the average market cap of $97M. It is one of the few biotechnology investments that present strong short-term upside but doesn't come without its risk. In this case, the risk is a single-lead therapeutic pipeline that can make or break this firm with the downside being a possible delisting. The following report will aim to outline the risks and upside expected by analysts as well as a progress report on clinical results to date.

Products/Pipeline

BioLineRx's pipeline and products consist of one "off-strategy" legacy commercialized Class 2a medical device (BL-5010 for skin lesions) and two clinical-stage therapeutics, Motixafortide (BL-8040) and AGI-134. Motixafortide is a Phase 3 novel peptide aiming to treat pancreatic cancer, acute myeloid leukemia, and stem cell mobilization. AGI-134 is a Phase 1/2a immuno-oncology agent (synthetic alpha-Gal glycolipid) developed to treat solid tumors.

Management

BioLineRx has been led since October 2016 by Philip Serlin, CPA, MBA. Serlin previously served for 7-years as Chief Financial Officer and Operating Officer. Before that, he served as CFO and COO of Kayote Networks, a provider of advanced VoIP peering solutions, and CFO of Tescom Software Systems Testing Ltd. He also served for 7-years at the SEC. He doesn't have a background in biotechnology which may evidence the unique out-licensing/in-licensing strategy employed and may increase the risk of therapeutic approvals.

Financial position

BioLineRx is financially unique its low-cost strategy

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.