Biotech Values

[vinmantoo]

Anyone here invested in PGNX? It is a small biotech but has some interesting prospects. They had a pathetic CEO but jettisoned him about a year or two ago and have been moving in the right direction since. What I like is they have a nice, albeit small revenue stream from Relistor, which is used for Opiate Induced Constipation (OIC) and is partnered with Salix. Relistor is used as a sub-cutaneous injection and has been on the market for several years but only in advanced medical illness. That market expanded greatly with the recent FDA approval for use in chronic pain, which generated a $40 million milestone. PGNX has close to $90 million in the bank and no debt. The only problem is that NKTR also got a recent approval for their oral OIC drug in chronic pain. Relistor works faster but the sc delivery is a relative negative. An oral Relistor formulation is schedule for NDA submission in Q2 2015, and its approval generates a $50 milestone payment. I find their prostate cancer imaging agent very promising too. The near term event generating is their anti-PSMA conjugated antibody, and their phase 2 prostate cancer trial update is coming in a week or so. There was some negative press in pass I due to toxicity and deaths, but that was likely overblown due to the very advanced nature of the patients.

If you are interested, check out their most recent corporate presentation.

http://files.shareholder.com/downloads/PGNX/3963825863x0x795198/A22BF159-A06F-4B69-84E3-CB749700B9F9/PGNX_Corporate_Presentation_11-17-2014.pdf