IntelGenx Technologies Finally Finds Its Stride (AMGN, IGXT, GSK)
Amgen, Inc. (NASDAQ:AMGN) and GlaxoSmithKline plc (NYSE:GSK) aren't immediately threatened by IntelGenx Technologies Corp. (OTCMKTS:IGXT), but that doesn't mean IGXT can't offer a reward to its shareholders.
By James E. Brumley
Dec 1, 2014 9:11:42 AM PST | 43 View(s) | No Comment(s) - Post a Comment Rating
When one thinks of a biopharma conglomerate, usually names like Amgen, Inc. (NASDAQ:AMGN) or GlaxoSmithKline plc (NYSE:GSK) come to mind. And for good reason. GlaxoSmithKline has generated revenue of $37.3 billion over the past twelve months, while Amgen has generated $19.7 billion worth of sales over its prior four quarters. Size, however, isn't a prerequisite for success in the world of biotech, though. Neither is a huge array of product offerings. Opportunity is all relative, which is what makes IntelGenx Technologies Corp. (OTCMKTS:IGXT) such an interesting opportunity for investors right now.
With a mere market cap of $40 million, it's not as if IGXT garners a lot of media attention. It's that current lack of attention that makes the stock so juicy here, however - the likely "bid up" once the organization is discovered (in earnest) has yet to materialize. Such an even may be closer than most suspect, though.
IntelGenx Technologies is as much a platform developer as it is a drug developer. The company has created three drug-development platforms... an immediate release oral film called VersaFilm(tm), a mucoadhesive tablet names AdVersa(tm), and a multilayer controlled release tablet, VersaTab(tm). Partners are already on board using these technologies to design new drugs, but more are being sought.
In the meantime, IGXT has an attractive pipeline of its own in addition to a small but growing stable of approved drugs.
Its flagship and only on-the-market drug this far is Forfivo, as a therapy for major depressive disorder. It's a competitive market to be sure, with drugs like Lexapro, Celexa, and Paxil - and all their generic versions - maintaining a pretty tight grip on their market share. Forfivo is chipping away pretty impressively, though. in the third quarter of this year, IGXT drove $450,000 in sales. No, it's not a lot on the surface, but compared to Q3-2013's (before Forfivo was approved) top line of $100,0000 and Q2's revenue of $160,000, it's clear sales the company's depression drug is picking up speed.
Other drugs are moving onto the menu too. Rizaport, for migraines, is now being reviewed by European regulators. Two more specific drugs are pretty well through the pipeline as well, waiting for partners, and several more drugs are on the development table.
Said another way, there's never been more going for the company before than there is now, even though the stock's price has been much higher in the past than in is now.
None of that, however, is really what makes IGXT a prime trading candidate right now. Right now, this stock is a buy mostly because the downtrend that beat the stock to a pulp since early February has been snapped, and the bulls are charging. Shares have rallied from a low of 33 cents to their current price of 61 cents in just a little over a month, on strong volume. The bulls don't appear to be done yet, either.
Bottom line? It's one of those stories you often don't hear about it until well after the fact. This isn't to say IntelGenx Technologies Corp. is the next Amgen or the next GlaxoSmithKline plc, because it probably isn't... and certainly won't be for years. On the flipside, all large companies started out small, one way or another. Between three marketable drug development platforms, one approved drug, one partner-developed drug under review in Europe, and a handful more ready to push deeper into the pipeline, this stock could make for in interesting addition to the aggressive portion of portfolios.
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