Soligenix (OTCQB:SNGX) shares were rising as the company was featured in yet another article posted on influential financial markets blog, Seeking Alpha, which praised the company's recent collaboration deal as increasing the likelihood of clinical success.
Shares of the company, which is developing its pipeline of biotherapeutic and biodefense drugs, rose 10.8 per cent as of early afternoon Thursday, sitting at $1.33. Its stock has more than doubled since the start of the year.
Earlier this month, Soligenix signed a collaboration agreement with SciClone Pharmaceuticals for its lead candidate SGX942, which has $500 million plus of market potential. The company will develop its SGX942 candidate for oral mucositis with SciClone, thereby receving access to SciClone's clinical and regulatory data library in exchange for commercialization rights in China. The drug, an innate defense regulator, is being developed to treat oral mucositis in solid tumor patients, especially those with head and neck cancer. The disease is often a complication of cancer therapy such as radiation or chemo, and has no current approved drug therapy.
The deal to develop the treatment brings quite an advantage to Soligenix, as SciClone completed two phase II clinical studies in 2010 and 2012 on drug SCV-07, which was also targeted for the treatment of oral mucositis in head and neck cancer patients, before deciding to terminate the program.
"In a win-win scenario for each company, Soligenix will evaluate the data in hopes of better designing the upcoming trial for the same indication and will use a favorite concept of mine by 'learning from other's mistakes, rather than just their own'," notes the Seeking Alpha article.
"This lesson could potentially save time and associated costs by not repeating any mistakes that SciClone might have committed in its trials. Soligenix will also have access to associated blood sample evaluations that could provide biomarkers."
The article went on to state, "The collaboration enables Soligenix to "hit the ground running" in the upcoming trial, with additional knowledge and data that will likely only serve to facilitate the trial's chances of success with less of the costly "trial and error" often required in such clinicals."
The Seeking Alpha contributor concludes that selections from "under the radar" development-stage pharma companies can give interested investors the time to choose solid entry points, without fear of having to chase a share price upward, or having to make a quick entry before properly completing their own due diligence.
"I believe I have found one such candidate possessing a unique combination of technology, drug pipeline, targeted market group and financials that may reward investors with solid gains if events unfold as they appear capable of doing in 2013 and beyond."
After closing a $7.1 million financing last month, the company is planning to start phase 2 clinical trials for SGX942, as well as for its second lead candidate SGX203, which is being developed as a potential treatment for pediatric Crohn's disease, later this year.
These two candidates are just one part of the company's potential, however, with a huge pipeline that in biotherapeutics and vaccines for biodefense that are targeting indications that each has a market potential of at least $200 million plus.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.