I'm a newcomer to the biotech space, but one thing I've learned in the short time I've been following it is that this sector has shown over and over again the potential for some spectacular gains, particularly with development stage companies. I won't list all the junior biotechs that have seen their market capitalizations explode by 500%, 1000% and more in the past couple of years, anyone who follows this industry already knows who they are.
Investors have been falling over each other to get in on any number of big movers just this year alone. With the potential for ground breaking discoveries that can bring an end to, or at least provide an effective treatment for horrible diseases like cancers, diabetes, alzheimers and many more its not hard to understand why. And as our population ages the need for effective treatments and/or cures in conditions that affect the elderly is only going to increase.
But enough preamble. At the end of the day, for me at least, investing and trading is about finding companies before they catch fire, before the PPS climbs 1000%.
Is Resverlogix below the radar? The trading certainly suggests that it is. In the past 20 trading sessions the largest volume day on the TMX was just over 278,000 shares, the lowest was just 18,965. And on the US side where the company trades OTC under the symbol RVXCF the volumes are even lighter, Thursday June 25th saw just 6,000 shares trading and the 3 month average is only 26,555 as per yahoo finance.
The question is though, does Resverlogix have the potential to garner the attention of the investing public? I believe it does, and if I'm right and those volumes increase substantially, I expect to see RVX and RVXCF move as other biotechs have with a substantial increase in their roughly $200 million (CDN) market cap.
Outstanding shares are at 86,168,304.
On April 27th 2015 a private placement was announced with Eastern Capital for 5,600,000 shares at $2.67 (CDN) per unit, with each unit representing one common share as well as .07538 of a share warrant. For those unfamiliar with Eastern Capital I'll suggest researching billionaire Kenneth Dart.
So what is Resverlogix developing that has caused such a rise in its PPS since the end of 2015 even without the heavy volume that comes with wide media exposure and the attention of the retail investing crowd?
RVX-208....Again, I do not have a science background, but this field is called Epigenetics. Most know what genes are, and Epi is Latin for above. The CEO of the company Donald McCaffrey equates it to hardware and software, with genes being the hardware and epigentics being the software, turning things on and off.
RVX-208 in trials has shown indications to reduce Major Adverse Cardiac Events or -MACE- in patients with a wide range of conditions including diabetes and kidney disease among others.
Of course funding a phase III trial for a drug that impacts a disease like diabetes is incredibly expensive and requires a huge number of participants. And this is where things start to get exciting. The company has been indicating that we should soon be hearing about an application for the drug with an "orphan disease".
Experienced players in the biotech world will understand the significance, but I myself have only just come to understand it. By finding an orphan disease that would benefit from RVX-208 the timeline and cost for a phase III trial are reduced exponentially....it moves the finish liner closer by years.
I do believe that RVX (OTCPK:RVXCF) is being noticed by investors, but not by the general investing public.
I'll wrap up this blog post with a link to a recent presentation by the CEO. The presentation was to a group of select investors but it was not a road show type event sponsored by a large brokerage firm, nor was it publicized in the media. The link is from the Richmond Club and is not available on youtube or anywhere else I can find.
And if you're looking for a respectful and mature moderated forum you can check out agoracom.com where I participate with the username ledenfrog.
This is strictly an opinion piece, and my opinion(s) could very well turn out to be wrong. This instablog post is intended strictly for informational and entertainment purposes and should not be used as a basis for any investment decisions. Verify all information presented, while I have endeavored to ensure accuracy I do not warrant that any or all information presented is without error.
Investing in stocks or options involves significant risks. For investment advice you should seek the input of a professional.
Disclosure: I am/we are long RVXCF.
Additional disclosure: You can find me in numerous forums where I use the names krill66 (yahoo) growacet (stocktwits) and ledrog (stockhouse).