[ACCESSWIRE]
DALLAS, TX / ACCESSWIRE / November 5, 2015 / Stonegate Capital Partners has recently initiated coverage on Resverlogix Corp, Inc (TSX: RVX).
Company Description
Resverlogix Corp., based in Calgary, Canada, and San Francisco, CA, is in the clinical stages of developing its lead small molecule therapeutic apabetalone (RVX-208). This molecule is the first selective Bromodomain and ExtraTerminal domain ("BET") inhibitor used in clinical trials. RVX-208 began a Phase 3 clinical study in cardiovascular disease (CVD) patients with diabetes mellitus and low HDL in October 2015. The company is also investigating the molecule for the treatment of other diseases such as Alzheimer's disease, peripheral artery disease (PAD), chronic kidney disease (CKD), and orphan diseases based on results of extensive laboratory study. RVX-208's mechanism of action has demonstrated the potential to have positive biological effects against a host of disease-causing genes and is still being explored.
Summary
Resverlogix offers a unique opportunity for investors looking to participate in the clinical development of a late stage compound with robust data supporting its therapeutic potential and applications across several areas of disease with unmet medical needs:
- The company's lead molecule RVX-208 began a Phase 3 study in October 2015 to include over 2400 patients at over 170 sites globally for high risk type 2 diabetes patients with CVD; the trial is expected to take 2 - 3 years to complete, with full enrollment by Q1 2017 and dosing completed 2H 2018
- The compound has demonstrated a strong safety profile with almost 1000 patients treated to date
- In addition to targeting indications related to cardiovascular disease, this lead compound has also demonstrated therapeutic effects towards the treatment of several other diseases, such as Alzheimer's disease, peripheral artery disease, chronic kidney disease, and orphan diseases
- In addition to its Phase 3 study, management has recently announced that it intends to pursue orphan indications as well for RVX-208, with less costly and more rapid paths to commercialization; a pilot study is scheduled to launch 1H 2016 with clinical trials to follow
- The company has a solid patent portfolio, with protection surrounding its lead product candidate RVX-208 extending through 2033, as well as a robust proprietary database with extensive research findings beyond its clinical trials analyzing pooled data results
- The market sizes for which RVX-208 shows therapeutic promise are significant; for CVD alone, Deutsche Bank estimates that the residual risk in the vascular disease market is worth up to $90 billion; Phase 3 residual risk assets within that pipeline are given estimates ranging from $10 - $13 billion
- As most recently reported, the Company has approximately CAD $63 million in cash on hand with an approximate cash burn of CAD $3 million per quarter
- Based on a discounted cash flow analysis of the market potential for RVX-208, it appears that given certain assumptions on commercialization, the company's stock is currently undervalued and could trade in the range of $3.54 - $9.34 per share
We believe that Resverlogix has secured a solid pathway towards commercialization for RVX-208 with the design of its current Phase 3 study. Additionally, management will be active in discussions with potential partners and licensees over the upcoming fiscal year as Phase 3 gets underway and the molecule is also put to the test for orphan indications as recently disclosed by management. Positive news flow should yield investor returns as Resverlogix delivers these highly anticipated results.
The full report can be accessed by clicking the following link: www.stonegateinc.com/reports/RVX_NOV_2015.pdf
About Stonegate Capital Partners
Stonegate Capital Partners is a Dallas-based corporate advisory firm dedicated to serving the specialized needs of small-cap public companies. Since our inception, our mission has been to find innovative, undervalued public companies for our network of leading institutional investors who seek high quality investment opportunities.
SOURCE: Stonegate Capital Partners