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Soligenix Poised To See Great Success: Seeking Alpha

Jul. 02, 2013 3:56 PM ETSNGX
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Soligenix (OTCBB:SNGX) is an "up and coming biotech company" with a large pipeline, according to Seeking Alpha contributor Josh Ginsburg.

The company, which is focused on bio therapeutic pharmaceuticals and bioterrorist vaccines, was featured in an article written by Ginsburg and posted today on the influential financial markets blog, titled "The Green Light is on forSoligenix". The piece focuses on the company's current upcoming trial milestones, partnerships and insider activity which could be "signaling investors to take a better look at this emerging biotech".

Since Ginsburg's last article on Soligenix, it has since been picked up by Zack's Investment Research and given a buy rating, with a price target of $4.50 over the next one to three months. As well, the company has secured a new $7.1 million in capital and is continuing to push full force ahead into new 2013/2014 catalysts.

In its recent capital raise, Ginsburg takes note of participant R.J. Kirk, a pharmaceutical billionaire entrepreneur who made his initial $2.4 billion fortune by selling his prior companies to Shire and Forest Laboratories.

"[Kirk] has a phenomenal track record for building and selling biotech companies at billion dollar valuations. What may wind up becoming Mr. Kirk's biggest win yet is his newest company Intrexon (ww.dna.com) which has established a worldwide collaboration with Soligenix for the company's drug addressing Melioidosis," wrote Ginsburg in the piece.

Melioidosis is listed as a top five high-priority threat in the HHS2012 public health emergency medical countermeasures enterprise strategic plan, and is considered of particular interest to governments in China, Thailand, India and Australia, with a "good possibility" that at least one of these governments could initiate a contract with Soligenix in the short term, said the Seeking Alpha writer.

Ginsburg also took note of Soligenix's management and board, which brings experience from companies such as Merck, Bristol Myers Squibb, and GE Healthcare, among others, and that also particpated in the financing. "With such a strong background of individuals leading SNGX on its course, I am only further convinced that the company is poised to see great success in its future."

Aside from the melioidosis collaboration, Soligenix also holds SGX203 -- one of its main product candidates and a potential treatment for pediatric Crohn's disease -- as well as the SGX94 platform for oral mucositis and the ThermoVax vaccine thermostabilization technology in its biodefense unit.

SGX94 is a treatment for oral mucositis, for which the company plans to start a phase 2 clinical study in the second half of this year. Earlier this month, the company received fast track designation from U.S. regulatory authorities for the treatment in head and neck cancer patients undergoing radiation and/or chemotherapy. Zacks analyst Grant Zeng recently wrote in a report that the market opportunity for this drug is "huge" as mucositis is a debilitating condition that frequently affects cancer patients undergoing radiation and chemotherapy treatment.

Ginsburg concurs. "In looking at Soligenix's current pipeline the worldwide market valuations can be viewed on the graph below. In total the company is addressing a $2.27B+ total market not including the company's therapy for Melioidosis.

"Considering that the company will have a significant degree of potential marketing and taxation advantages resulting from the numerous orphan drug designation awards, a high earnings per share income could be inferred for the future if its therapies continue to advance to market."

He said he sees the company has enough funding to likely make it to 2015, based on the recent capital raise, the fact Soligenix has no debt, and the potential for a multi-million contract before year-end.

Shares of Soligenix have advanced more than 66 per cent year-to-date.

To read the article in full, please click here.

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

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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