hogfan's picks

[hogfan2]

$RNN...http://www.thelifesciencesreport.com/pub/co/5343

CJ: We like Rexahn Pharmaceuticals Inc. (RNN:NYSE.MKT), and we think there's a big disconnect between the current valuation of about $1.15/share and our $3/share target price.

It is rare to see an actual pipeline of proposed products in clinical trials in the small-cap space. Rexahn's focal point is oncology, but it is focused diversely. You have lots of shots on goal with this name. You have Archexin, which is an RNA-based therapeutic—an antisense compound—as well as a two small molecule approaches with differing mechanisms of action. In addition to that, the company has a platform.

"The most important near-term catalyst in most of these growth names is going to be data."
Last year was tough for the stock because of the lack of catalysts, but the company has a number of significant drivers coming in Q1/15. We will see Phase 1 data from Supinoxin (RX-5902) in solid tumors in patients who previously failed other regimens. Also in early 2015, we will see Phase 2 proof-of-concept data from Archexin (Akt-1 antisense oligonucleotide inhibitor) in metastatic renal cell carcinoma. That's a program we're very excited about, and probably the most significant near-term growth driver for the stock. Then, possibly in late in Q1/15, we could see data from RX-3117 (fluorocyclopentenylcytosine) in patients with solid tumors. I think 2015 will shape up to be much more meaningful for Rexahn than 2014.

There are lots of ways to create value with Rexahn. Once we start to see some data—some hints of efficacy—early next year, I think the discussion around partnership should pick up. That could be a significant driver as well.