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Soligenix Shares Gain As Seeking Alpha Blog Says Latest Collaboration Increases Likelihood Of Success

Jul. 18, 2013 2:14 PM ETSNGX
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Proactiveinvestors is a leading multi-media news organisation, investor portal and events management business with offices in New York, Sydney, Toronto, Frankfurt and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of listed companies across the globe daily. We are one of the fastest growing financial media portals in the world. The group also operates hugely successful “investor forums” where three or four companies present to an audience of high net sophisticated investors, fund managers, hedge funds, private client brokers and analysts. Ian Mclelland founded Proactiveinvestors in 2006 as a way to channel his own views on companies small and mid-cap public companies. What started as a hobby quickly turned into a full time job as the website's readership exploded. One2One forums were added later in 2006, and within two years the company had expanded its operations into Canada and Australia. In 2009 the company expanded into Germany and finally into the US in 2010. Proactiveinvestors is now one of the fastest growing global financial media organizations in the world receiving more than one million visitors per month, with investor forums held across the globe on a regular basis.

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.

To read the latest Seeking Alpha article on Soligenix 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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