"Which compound is RXi's blockbuster? I guess I don't consider any of them as blockbuster, however, they are compounds that, if effective, have potential to be money makers.
Also, most companies that fall into the category have market caps of over $50 million. Risk/reward at this PPS with RXII is minimal in my opinion."
I don't want to start an argument, but I think there's some misconceptions in the post above.
1) Most / many R&D micro biotechs consider their "platform" (think of it as a scientific technology) to be their breakthrough. For RXI, it's the self-delivering RNAi (sd-RNAi). In theory, it can be used in conjunction with literally thousands of proteins / "biologics". RXI's website explains this in layman's terms.
The problem? sd-RNAi hasn't been shown to work (yet). It has not been validated. That's why getting *something* to work is so important. The licensing / partnership opportunities could be virtually limitless.
2) The biggest money drug / pipeline is the cosmeceuticals, but human testing has not begun. Many questions need to be addressed, such as,
a) How often would treatment be required?
b) Would this have to be performed by a dermatologist (increases cost), or could it be done at a skin salon (micro needling isn't exactly something you do at home)?
c) Can a topical compound be developed without requiring micro needling? So far, no success there.
d) No doubt, there are many other issues to be resolved.
3) "Risk/reward at this PPS with RXII is minimal"
Not true. At all. Just look at RXI's chart. If you bought shares as little as two years ago, you're looking at a 90+% loss. In other words, you would need a 10-bagger just to get back to even.
I've been in and out of RXI for the last 1+ years. I'm underwater probably "only" 50-60% or so (I'm afraid to tally up the actual number).
Could RXI go to zero? You betcha! Will it? No one knows.
RXI needs $10 million / year. The current market cap of $15 million precludes yet another round of dilution.
RXI needs a financial windfall, be it a merger, buyout, licensing, or partnership deal. And for that to happen, there must be nothing but good progress going forward.
IMO, a large bet ("Back up the truck!") on any stock is not a good idea. For RXI, it's a very bad move. Instead, limit yourself to no more than a 20% position. Max. If RXI is successful, you'll have your 10-bagger (and more). If not, your money will disappear. Keep in mind that, so far, RXI has been a miserable investment.
