More good news for RXII - "Investors Seeing Huge Potential In RNA Drug Developers"
RNA Companies Are Having a Good Year
This year we've been seeing increased interest in RNA based therapeutics from biotech investors. It seems that the market is beginning to pay attention to the strong clinical trial data that some of these RNA drugs have delivered thus far, and see the potential for this sector to revolutionize the treatment of various diseases.
Making big headlines yesterday was RXi Pharmaceuticals (RXII) which announced a deal made with OPKO Health (OPK) which gives RXi intellectual property rights to OPKO's iRNA portfolio in exchange for $50 million worth of milestone payments, royalty payments, and 50 million shares of RXi common stock. This significantly expands the size and scope of RXi's RNA program, which is currently led by RXI-109.RXI-109 is an iRNA compound that inhibits the CTGF (Connective Tissue Growth Factor) protein, which plays a key role in the formation of scar tissue.
It's also worth noting that RXi also bolstered its cash position with the sale of $16.4 million worth of common stock to private investors.
As a response to these recent developments, RXII jumped over 34% in a single trading session. This brings 2013 total gains in RXII to 160%.
Another aspect of the RXII deal which has enticed many investors is the involvement of Dr. Philip Frost - a famous investor who has a very impressive track record for wealth creation in the biotech sector, going all the way back to his acquisition of Key Pharmaceuticals back in the 1970's. His first big deal resulted in a $600 million buyout by Schering-Plough in the 80's. Dr. Frost is now the CEO of OPKO Health, and should draw much more market attention to RXi following the announcement of this deal.
Watch DR Frost sell OPKs RNA Drugs to RXII for 50 mil shares and then Merge RXII with ALQA, another wound care and scarring DRUG Company that he holds over 10% of the shares on the market . He has 40% of OPK and when they have merged in the next few months he will make millions on all three stocks . My thoughts are that they will be merged soon . This has all been planned months ago, and will happen as RXII releases its phase -1 wound and scarring study next month . I will be a fun year to have these 3 stocks . Yes I do have shares in all 3 , unlike the bashers on these boards . Good luck to all longs