REVB: REVB Looks Attractive Ahead of 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. Many of the company’s current therapeutic candidates are based on the active ingredient PHAD, which is a synthetic version of MPLA, that is known to stimulate TLR-4. A more detailed explanation of the science behind PHAD is available later our complete research report, but briefly, PHAD stimulation of TLR-4 leads to the production of multiple types of cytokines and chemokines which modulate the activity of the innate and adaptive immune response. Modulated activities may include stimulation and recruitment of infection fighting immune cells, down-regulation of inflammation, and/or upregulation of inflammation depending on the degree and nature of the stimulation which enables the multiple potential product candidates in development.
As mentioned, the details and science explaining PHAD are available in our research report, but, given that research, we believe the company that can harness and direct that impact to the right conditions, in the proper dose, and in the correct manner, can have a large positive impact on an extensive patient population and stands to benefit greatly if and when those treatments reach the stage of commercialization. To that end, we are pleased to see that the company’s cash on the balance sheet of almost $18 million as of the end 1Q 2023, up from just over $5 million at the end of 2022, largely due to a share offering early this year. Management believes this cash will be sufficient to fund operations through June 2024. Existing shareholders don’t love dilution, but the need for funds to continue research and testing efforts justify such actions and new investors can get in after the dilution. Of course, a company at this stage of development will likely have to tap the capital market again, but we believe Revelation will be in a stronger position to do so as they receive results from Phase 1 trials that are scheduled to begin this year. As positive results emerge at each step of the process, investors typically become more willing, and in some cases anxious, to provide funding for a clinical-stage company to continue its progress. 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-right after a fund raise and just before testing on potentially exciting treatments begins.
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. As a result, we believe that REVB presents an attractive opportunity at recent prices for investors with a modestly higher risk tolerance.
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