BioLineRx Ltd (BLRX)

[midastouch017]

Conclusions

I probably sound like a broken record when I state that BioLineRx is deeply undervalued in every one of my articles on this company. BioLineRx has rich partnerships with large pharma, a strong and expanding pipeline, a potentially blockbuster oncology drug candidate, BL-8040, and now it added a potential game changer in AGI-134. And it did it with a very modest expenditure of only $3M in cash, with the rest being $3M in stock.

CEO Serlin stated during the March 23, 2017, conference call that AGI-134 is ready for clinical development, and they plan to begin trials in patients with solid tumors in the first half of 2018. I expect trials to begin using AGI-134 as a monotherapy, followed by trials in conjunction with checkpoint inhibitors. But it is likely that these trials could be performed in parallel, as it is the case with BL-8040, once the concept is proven. Big oncology players like Merck and Genentech have shown an appetite to try their checkpoint inhibitors with numerous drug candidates that work on the tumor micro-environment like BL-8040 and AGI-134 do.

BioLineRX announced on March 27, 2017, that it will feature AGI-134 at the upcoming American Association for Cancer Research Annual Meeting, to be held in Washington DC from April 1 to April 15, 2017. On April 2, 2017, the company will present an abstract titled "The novel a-Gal-based immunotherapy AGI-134 invokes CD8+ T cell-mediated immunity by driving tumor cell destruction, phagocytosis and tumor-associated antigen cross-presentation via multiple antibody-mediated effector functions."

The company has a solid balance sheet having ended 2016 with $36M in cash and no debt. This means that it is funded at least into 2H 2018. Therefore, there shouldn't be fears of near-term equity offerings that are so damaging to small biotech valuations. Just to reiterate how undervalued BLRX's shares currently are, the company's market cap is only about $30M above cash on hand.

I believe the market will take notice this time, and the share price will begin reflecting the current analyst $3.02 average price target. The highest PT is $7/share. The most recent recommendations were given as a "Buy" with a $3/share PT by Rodman & Renshaw on February 13, 2017, and on February 15, 2017, by H.C. Wainwright.