REVB Releases Earnings and Prepares for Trials
NASDAQ:REVB
READ THE FULL REVB RESEARCH REPORT
Revelation Biosciences (NASDAQ:REVB) is a life sciences company focused on the development of immunologic-based therapies for the prevention and treatment of disease. Revelation has multiple product candidates in development that we believe have promising potential and are based on the biology of phosphorylated hexaacyl disaccharide (PHAD) and its effect on the innate immune system. The impact of PHAD on the immune system has been studied over multiple years and has been shown to have a positive effect on the human immune system.
The current therapies being developed under the so-called Gemini project are:
• REVTx 300, which is being developed as a potential therapy for the treatment of acute and chronic organ disease including CKD, AKI and myocarditis.
• REVTx 100 is being developed as a prevention and treatment of infection.
The company has announced that Phase I testing is set to begin on Gemini near the end of 2023—a crucial milestone for the company and one that we are anxious to see the results of.
We believe the toughest fund raise of the process for Revelation has been completed, leaving the company’s balance sheet in good shape and providing an opportunity, in our view, to get into REVB at a good time-after a fund raise and just before testing on potentially exciting treatments begins.
The company bolstered those beliefs with their 3Q earnings release which showed:
• A loss of $0.42 per share, slightly lower than our expectations.
o Research expenses were more than we had expected, while administrative costs were slightly lower than expected—a tradeoff we appreciate and we believe speaks to the commitment of management to bring the company’s therapies to the public.
• A cash balance of $14.0 million, which the company says will be sufficient to fund operations through September of 2024.
o We are of the view that this is the most important number released in this report. Funding sources have tightened in the last several months and multiple companies at this stage of development are having trouble finding additional capital. We believe the solid cash balance for REVB makes the company even more attractive than otherwise might be the case.
We are under no illusions that it’s easy to bring new therapies all the way to commercialization and Revelation will undoubtedly face challenges, but we believe that REVB is worth a look by investors due to the potential of the treatments being investigated, the science that has already been established behind those treatments, and the experienced management team the company has, headlined by the CEO who has overseen six INDs and two marketing approvals—experience we believe is needed to shepherd these treatments through the gauntlet of the FDA.
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