Source:
The Life Sciences Report (8/31/16)
https://www.thelifesciencesreport.com/cs/user/print/na/17082
The late-stage biopharmaceutical company Soligenix has had a string of good news. Revenue is up, the FDA awarded orphan status to a key drug, and BARDA and NIAID have granted the firm additional funding, plus the company is developing vaccines against Ebola and ricin, and has several other ongoing trials. Analyst Grant Zeng of Zacks Investment Research assesses the landscape.
Soligenix's Rare Disease Pipeline
In an Aug. 18 research report, Zacks analyst Grant Zeng reviewed
Soligenix Inc.'s (SNGX:OTCQB) Q2 financials. "Total revenue for the second quarter was $3.2 million, as compared to $1.1 million for the same period for the prior year. Revenues included contracts with BARDA and NIAID in support of OrbeShield® development in the treatment of gastrointestinal acute radiation syndrome (GI AR and advanced development of the Company thermostabilization technology, ThermoVax, combined with its ricin toxin vaccine RiVax, as a medical countermeasure to prevent the effects of ricin exposure," the analyst stated.
Zeng continued by noting, "Net loss for 2Q16 was $0.1 million ($0.00 per share), as compared to $4.0 million ($0.15 per share) for the same period last year. Included in the net loss for quarters ended June 30, 2016 and 2015 is non-cash income of $0.9 million and a non-cash expense of $1.9 million, respectively. This non-cash item reflects the change in fair value of the liability related to warrants issued in the Company's June 2013 registered public offering and is included in other income/(expense)."
Zeng also focused on Soligenix's Aug. 18 announcement that the FDA granted orphan drug designation to dusquetide for treatment of macrophage activation syndrome (MAS). This follows dusquetide's orphan status for acute radiation syndrome.
"Dusquetide (SGX942), the company's lead candidate," explained Zeng, "is an innate defense regulator (IDR), a new class of short, synthetic peptides that accelerates bacterial clearance and resolution of tissue damage while modulating inflammation following exposure to a variety of agents including bacterial pathogens, trauma, radiation and/or chemotherapy."
Zeng enumerated some of the benefits of orphan designation: "In addition to providing a seven-year term of market exclusivity upon final FDA approval, orphan drug designation also positions Soligenix to be able to leverage a wide range of financial and regulatory benefits, including government grants for conducting clinical trials, waiver of expensive FDA user fees for the potential submission of a New Drug Application, and certain tax credits."
Zeng also discussed Soligenix's late-July announcement that it had received additional funding from the Biomedical Advanced Research and Development Authority (BARDA) and the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH).
"OrbeShield is an oral BDP (beclomethasone 17,21-dipropionate) formulation, which represents a first-of-its-kind oral, locally acting therapy tailored to treat gastrointestinal inflammation. BDP is a corticosteroid that has been marketed in the U.S. and worldwide since the early 1970s via other methods of delivery," Zeng stated, adding, "Soligenix's oral BDP is specifically formulated for oral administration including SGX203, SGX201, orBec, and OrbeShield. Each is designed as potent, topically active corticosteroid to treat GI inflammation and provide superior safety profile."
Soligenix had also earlier announced "positive preliminary proof-of-concept results from a heat stable subunit Ebola vaccine," "additional NIAID funding to advance development of a ricin vaccine," "positive results from its Phase II proof of concept (POC) clinical trial of SGX942 for the treatment of oral mucositis in head and neck patients," and "the initiation of its much anticipated pivotal Phase III trial of SGX301 for the treatment of cutaneous T-cell lymphoma (CTCL)," Zeng noted.
Zeng concluded, "We remain optimistic about Soligenix's long term prospect. Our fair value for the company remains at $4.00 per share. We believe there are multiple catalysts to drive the share price up in the next 6 to 12 months. . .we believe Soligenix shares are undervalued at current market price [of $0.60/share]."
Read what other experts are saying about:
Like this article? Sign-up to receive the newsletter
 Newsletter Sign-Up |
|
|
Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or her family owns, shares of the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Soligenix Inc. The companies mentioned in this article were not involved in any aspect of the article preparation. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal
disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview or article until after it publishes.
Additional Disclosures for this Content
Zacks Investment Research, Soligenix Inc., Aug. 18, 2016
ANALYST DISCLOSURES
I, Grant Zeng, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report. I believe the information used for the creation of this report has been obtained from sources I considered to be reliable, but I can neither guarantee nor represent the completeness or accuracy of the information herewith. Such information and the opinions expressed are subject to change without notice.
INVESTMENTBANKING AND FEES FOR SERVICES
Zacks SCR does not provide investment banking services nor has it received compensation for investment banking services from the issuers of the securities covered in this report or article. Zacks SCR has received compensation from the issuer directly or from an investor relations consulting firm engaged by the issuer for providing non-investment banking services to this issuer and expects to receive additional compensation for such non-investment banking services provided to this issuer. The non-investment banking services provided to the issuer includes the preparation of this report, investor relations services, investment software, financial database analysis, organization of non-deal road shows, and attendance fees for conferences sponsored or cosponsored by Zacks SCR. The fees for these services vary on a per-client basis and are subject to the number and types of services contracted. Fees typically range between ten thousand and fifty thousand dollars per annum. Details of fees paid by this issuer are available upon request.
POLICY DISCLOSURES
SCR Analysts are restricted from holding or trading securities in the issuers that they cover. ZIR and Zacks SCR do not make a market in any security followed by SCR nor do they act as dealers in these securities. Each Zacks SCR Analyst has full discretion over the valuation of the issuer included in this report based on his or her own due diligence. SCR Analysts are paid based on the number of companies they cover. SCR Analyst compensation is not, was not, nor will be, directly or indirectly, related to the specific valuations or views expressed in any report or article.
Streetwise –
The Life Sciences Report is Copyright © 2016 by Streetwise Reports LLC. All rights are reserved. Streetwise Reports LLC hereby grants an unrestricted license to use or disseminate this copyrighted material (i) only in whole (and always including this disclaimer), but (ii) never in part.
Streetwise Reports LLC does not guarantee the accuracy or thoroughness of the information reported.
Streetwise Reports LLC receives a fee from companies that are listed on the home page in the In This Issue section. Their sponsor pages may be considered advertising for the purposes of 18 U.S.C. 1734.
Participating companies provide the logos used in
The Life Sciences Report. These logos are trademarks and are the property of the individual companies.
101 Second St., Suite 110
Petaluma, CA 94952
Tel.: (707) 981-8999
Fax: (707) 773-5020
Email:
info@streetwisereports.com