Market Overview

Three Biotech Companies With Large Upside Potential

Share:

Here's a look at three small-cap biotech stocks looking to capitalize on their novel technologies and solid management:

Posted by the MicroCap mavens at SecretCaps!

Sophiris Bio Inc (NASDAQ: SPHS)

Sophiris’s lead drug, PRX302 (topsalysin), is being evaluated for the treatment of urological diseases. PRX302 is a recombinant protein that has been modified to be activated exclusively by an enzyme in the prostate, allowing PRX302 to kill all cells with GPI receptors. PRX302 removes damaged cells by binding to their GPI-anchored receptors, which it turns into transmembrane pores. This causes cell content to leak out, killing the damaged cell without affecting healthy cells in the surrounding tissue.

PRX302 has been tested in eight clinical trials. In late 2015, the drug met the primary endpoint of a Phase 3 clinical trial as a treatment for lower urinary tract symptoms of benign prostatic hyperplasia (BPH). Patients treated with PRX302 demonstrated a 7.60 point improvement in International Prostate Symptom Score (IPSS) over a year-long period. Another promising result from PRX302’s trial was the lack of any evidence that the therapy causes sexual or cardiovascular side effects. Not causing these side effects would give Sophiris’s therapy a distinct competitive advantage over current pharmaceutical BPH treatments, which lack sustainable efficacy and often lead to sexual dysfunction. An absence of side effects would also give PRX302 an advantage over surgical procedures for BPH, which are invasive and frequently lead to impotence and incontinence. An estimated 36 million men in the U.S. are affected by BPH, and three million are prescribed pharmaceuticals for this condition each year, giving PRX302 very large market potential. The company believes that an “improvement in IPSS total score, if replicated in a second Phase 3 trial, may be sufficient for registration with the FDA”. This means Sophiris may be a single successful trial away from commercializing a drug for millions of Americans.

BioVie Inc (OTC: BIVI)

BioVie (formerly Nanoantibiotics Inc) is a new Biotech Company that is developing a new standard of care for patients suffering from liver cirrhosis.  The company is developing a groundbreaking therapeutic approach that may be be the first successful treatment of life threatening ascites due to liver cirrhosis.

BioVie’s platform technologies target ascites formation at its “mechanistic source,” by blocking the activation of neuro hormonal signals, thereby alleviating portal hypertension and correcting splanchnic vasodilation. The Company’s lead asset is its patented BIV201, which just received orphan drug designation by the FDA. The drug, which can be given in a hospital or outpatient setting, enables the body to increase effective blood volume and reduce unwanted chemical signals to the kidneys. 

The market for a new drug to treat Ascities is significant with over 20 million people worldwide living with Ascites. This year alone, the number of people who are affected by this debilitating condition is increasing by 10%. The total addressable market for a new drug for ascites could potentially exceed $500 million in the US, as there are no current products on the market to achieve the therapeutic benefit expected with BIV210.

The Company is also leveraging its platform technology to help patients with other forms of Liver Disease such as Esophageal Variceal Bleeding (EVB), NASH, and Hepato-renal syndrome type 1 and type 2. Since BIV201 is a new drug that blocks activation of neuro hormonal signals and targets Ascites formation at its mechanistic source, the Company’s final stage of its technologies development is to target patients with pre-liver/kidney transplantation, septic shock, and hyponatremia.

When investing in MicroCap companies, management is the driving force between success and failure. At the helm of BioVie is a rock star management team that includes Jonathan Adams MBA, as CEO, and Cuong Do MBA, as Director.

Mr. Adams has had a very successful track record in pharma/biotech since graduating with his MBA from Dartmouth/Tuck. Mr. Adams has over 26 years of experience in the pharma industry, including at Searle Pharmaceuticals where he was a member of the global launch team for Celebrex, a multi billion dollar drug.

Another key member of the BioVie team is Cuong Do, who brings decades of industry experience. Mr. Do  is currently Executive Vice President, Global Strategy Group, Samsung. Mr. Do helps to set the strategic direction for Samsung Group’s diverse business portfolio. He was previously the Chief Strategy Officer for Merck, a leading US pharmaceuticals company, Tyco Electronics, and Lenovo. Mr. Do was a former senior partner at McKinsey & Company, where he spent 17 years and helped build the healthcare, high tech and corporate finance practices. Mr. Do holds an MBA from the Tuck School of Business at Dartmouth.

Overall, BioVie’s strong team and groundbreaking new treatment, give this company massive upside potential. This makes BioVie a potent pick for investors as the Company is currently set to begin human clinical trials on its groundbreaking therapy this year. 

Idera Pharmaceuticals Inc (NASDAQ: IDRA)

Idera is a company that is devoted to developing and commercializing original cutting-edge treatments for diseases such as cancer and rare diseases. The company is led by CEO Vincent Mialno, who was previously CEO of ViroPharma, which was acquired by Shire Pharmaceuticals for over 4 billion dollars. The brains behind Idera’s technology comes from  Sudhir Agrawal whose  scientific breakthroughs have been reported in more than 300 research papers and reviews and is an inventor on more than 300 patents issued or pending around the world. 

The Company is developing nucleic acid therapies that can control immune responses to be more targeted. These therapies include two unique technologies: toll-like receptor (TLR) immune modulation and a proprietary third-generation antisense platform. 

The primary treatment in Idera’s pipeline is called IMO-8400, an antagonist of endosomal Toll-like receptors(TLRs) 7,8 and 9, is in Phase I/II clinical trials for the treatment of Waldenströms Macroglobulinemia and diffuse large B-cell lymphoma. At the end of March, the company received Orphan Drug Designation on IMO-8400 for the potential treatment of diffuse large B-cell lymphoma. 

Overall, Idera’s leadership and technology, give this company massive upside potential. Idera’s is a formidable pick for investors who are looking to invest in rare diseases and solid technology.

 

A SecretCaps Sponsored Post. This post does not involve a discussion of the risks associated, or the fundamental structure of the above mentioned companies. This post is to highlight recent news and results of the above companies. Readers should be aware of the status of each company's balance sheet, income statement, illiquidity risks and risks surrounding the approval of drugs and treatments which is inherently risky.

Disclosure: This content is strictly informational and educational. Do not invest or trade based upon this content. This is not a solicitation to buy or sell any security. Always contact a financial professional before executing any trades or investments. By reading this post you agree to SecretCaps’ full TERMS OF USE and agree to and understand SecretCaps’ Disclaimer. The author has received compensation by BioVie, amount disclosed in our Disclaimer for SecretCaps' sharing of this, pre-written and reviewed sponsored post. SecretCaps' owners and authors have NO position in any company mentioned above. 

Tags: BioVie

Posted in: Biotech Long Ideas Small Cap Trading Ideas General