Financial News
‘Baby with the Bathwater’ Biotechs (IPA, NRXP, PRFX, LEXX, LQDI)
The biotechnology sector is one of the industries that has experienced the “baby with the bathwater” phenomenon. In other words, perfectly good companies have been beaten down with lesser companies simply by being associated.
There are five small cap biotechs in particular that fit this profile and require your immediate attention.
ImmunoPrecise Antibodies, Ltd. (NASDAQ: IPA) recently announced a 460 thousand Euro grant for its subsidiary Biostrand. This is just the latest positive cash flow news for the diversified biotech company. The company earns revenues from sales of proteins to other research and preclinical companies, and is developing therapies and drugs through its subsidiaries.
Its most recent quarterly filing (2022 fiscal Q3 ending Jan. 31, 2022) painted a healthy capitalization picture for investors.
- CA$32 million in cash, CA$56 million in assets
- CA$14.1 million in revenues for the 9 month period creating CA$7.6 mill in gross profit
- CA$4.8 million for the quarter creating CA$2.5 million in profit
- CA$5.7 million in R&D expenses (9 mo) up from $1.3 million in 2021– the largest driver in the increased net loss.
Biotech is one of the few industries where a net loss isn’t an outright negative indicator. Many biotechnology companies are pre-revenue so they operate in the red exclusively. Conversely, IPA is already earning revenue through the sale of mammalian proteins to companies for research and preclinical studies, this along with healthy cash flow allows the company to continue funding studies for its R&D wing Talem Therapeutics.
IPA through Talem is moving its novel candidate PolyTope ® (TATX-03), an anti-COVID therapy, through the clinical pipeline; it is on the verge of Stage 1. The company has several other therapies, vaccines, and medicines in the R&D pipeline; however, PolyTope is the lead candidate. (view the full pipeline here: https://talemtherapeutics.com/pipeline/)
The company announced in April that its PolyTope cocktail has shown strong neutralization of the Omnicron COVID variant. Currently, most therapies approved by the FDA Emergency Use Authorization have lost neutralizing potency against Omnicron. IPA through conversations with the FDA anticipated this and has prioritized potency screening to help differentiate itself.
IPA is close to its next filing period which could be a catalyst for the stock; any updates on PolyTope’s progress could also send the stock soaring. So, investors interested should start researching IPA today.
Another company working on a COVID solution, NRx Pharmaceuticals (Nasdaq: NRXP), announced a Data Safety Monitoring Board (DSMB) update on U.S. National Institutes of Health (NIH) Study of ZYESAMI® (aviptadil) in Critical COVID-19
- Based on a review of nearly 75% of the target enrollment of 640 patients, most of which have reached 90 days, the Independent DSMB overseeing the ACTIV-3b (TESICO) study determined that evaluation of aviptadil should cease due to futility
- ZYESAMI® (aviptadil) was the sole remaining investigational medicine in ACTIV-3b targeted at Critical COVID-19 patients
- ACTIV-3b Critical Care Study evaluated ZYESAMI and Veklury® (remdesivir), in Critical COVID-19 Patients, as monotherapy and in combination against placebo
- The DSMB stated there were no safety concerns for aviptadil
From COVID, to a far more insidious pandemic, opioid addiction, PainReform (Nasdaq: PRFX) is a clinical-stage specialty pharmaceutical company focused on the reformulation of established therapeutics. PRF-110, the Company's lead product, is based on the local anesthetic ropivacaine, targeting the post-operative pain relief market. PRF-110 is an oil-based, viscous, clear solution that is deposited directly into the surgical wound bed prior to closure to provide localized and extended post-operative analgesia. The Company's proprietary extended-release drug-delivery system is designed to provide an extended period of post-surgical pain relief without the need for repeated dose administration while reducing the potential need for the use of opiates.
As of March 31, 2022, the Company had cash and cash equivalents of $15.4 million and no debt. As a result, the company has “more than sufficient capital to carry us through a number of key milestones, including the initiation of our first Phase 3 trial.”
An addiction said to be even stronger than opioids, nicotine addiction, is what Lexaria Bioscience Corp. (NASDAQ: LEXX) is fighting and it has announced the availability of a broadcast titled, “Nicotine Surges as Smoking Sags.”
To hear the AudioPressRelease, please visit: The NetworkNewsAudio News Podcast
To view the full editorial, please visit: https://nnw.fm/WNblw
The fact remains that an estimated 1.1 billion people smoked cigarettes in 2019. According to stats from the World Health Organization, a stunning 780 million people said they want to quit. As a result, people look to a multitude of options, such as nicotine pouches, boosting the market from $2.33 billion in 2020 with an eye-popping 30.7% annual growth rate to $21.84 billion by the end of 2027, according to MarketResearch.com.
This is an opportunity that lands right in the wheelhouse of Lexaria Bioscience Corp. (NASDAQ: LEXX). The company has been developing its DehydraTECH technology since 2014, regularly strengthening and broadening the technology to an unprecedented degree. The company now stands as a global leader in enhancing the speed and efficiency of orally delivered lipophilic (fat-soluble) drugs and active pharmaceutical ingredients (APIs). The company has protected its intellectual property with a robust patent portfolio that currently consists of 25 patents granted in more than 40 countries, as well as another 50 patents pending worldwide.
Finally, Liquidia Corporation (NASDAQ: LQDA) recently the presented data related to the investigational use of YUTREPIA™ (treprostinil) inhalation powder, previously referred to as LIQ861, at the America Thoracic Society (ATS) International Conference 2022 in San Francisco, California.
YUTREPIA is an investigational, inhaled dry powder formulation of treprostinil delivered through a proven, convenient, palm-sized device. On November 5, 2021, the FDA issued a tentative approval for YUTREPIA, which is indicated for the treatment of pulmonary arterial hypertension (PAH) to improve exercise ability in adult patients with New York Heart Association (NYHA) Functional Class II-III symptoms. YUTREPIA was designed using Liquidia’s PRINT® technology, which enables the development of drug particles that are precise and uniform in size, shape, and composition, and that are engineered for optimal deposition in the lung following oral inhalation. Liquidia has completed INSPIRE, or Investigation of the Safety and Pharmacology of Dry Powder Inhalation of Treprostinil, an open-label, multi-center phase 3 clinical study of YUTREPIA in patients diagnosed with PAH who are naïve to inhaled treprostinil or who are transitioning from Tyvaso (nebulized treprostinil).
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