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."
hey Red. OK you prompted me to look at this stock on the ARNA board, so I'm looking. Still studying up tissue science, anti-scarring, and I still have some CC's to review, so I can't express an opinion on the fundamentals or the science. but while I'm doing that, I'm looking at price and TA. Do you think RXII's recent price drop is due to the 50M shares for OPKO's iRNA portfolio? Is that dilution? OR would you call it a head and shoulder pattern forming in the 1-2 month chart? TIA
One need only to take a look at ALNY, another major player in RNAi with a sizable pipeline. located here in my home state along with RXII. This company has done nothing but surprise its shareholders for tha past two years. Gene silencing works. In due time, we shall see just how well it works!