"3 Reasons To Consider Investing In RXi Pharmaceuticals"
RXi Pharmaceuticals Corp : 3 Reasons To Consider Investing In RXi Pharmaceuticals
10/16/2013 | 10:20am US/Eastern
RXi Pharmaceuticals Inc. (Ticker: RXII) is a small $41 million RNAi therapeutics firm spun off from Galena Biopharma in early 2012. Unlike many other RNAi companies that rushed to bring products to market, the company took its time to overcome many of the industry's hurdles and is now reporting some promising clinical results. In this article, we?ll take a look at three reasons that investors should carefully consider this lesser-known RNAi stock.
Emerging Leader in RNAi
RNA interference ("RNAi") is a mechanism that inhibits the expression of a specific gene, thereby affecting the production of a protein. While small molecule drugs inhibit protein production in some cells, RNAi technologies may be able to address a much larger universe of targets that have been historically unreachable. That's why, according to BCC Research, the market is expected to grow at a 27.9% CAGR to $24.1 billion by 2015.
Dr. Craig C. Mello, Ph.D., founded RXi Pharmaceuticals after winning the Nobel Prize in Medicine for co-discovering RNAi and co-inventing RNAi therapeutics. Despite this seemingly significant advantage, the company was slow to start relative to other RNAi companies like Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY), who attempted to corner the market for molecules that mediate RNAi in order to collect a toll from everyone operating in the industry.
But soon, large pharmaceutical companies like Pfizer Inc. (NYSE: PFE) and Merck & Co. (NYSE: MRK) began selling their RNAi stakes due to problems with delivery and immunity. RXi Pharmaceuticals avoided this boom-bust cycle and spent the time perfecting a unique and highly efficacious delivery technology that could make it a new market leader. And with the industry's revival since 2011, the company is now poised to generate significant value.
Pharma, this is an example of a very small company, ( staff of only 10 if not mistaken), able to accomplish things that big pharma with hundreds working on a project are unable to do.
I believe this is Dr. Frost's greatest talent, to find companies with such abilities most of which were or are still flying below radar. I will dig up some of those companies and post them later, but point is RXI certainly one of those.
Gene silencing works, RXI-109 has proven it. Now let's see how far they can get it off the ground.
Time will reveal the quality of this company. Thus far, the science is nothing short of brilliant. It will be a rocky road as we wait for phase results, but I am convinced that if one just holds this for a number of years, it will pay off.