Innovation Pharmaceuticals Inc (IPIX)

[lousy engineer]

Looks like Brilacidin wasn't looked upon favorably 4 years ago.

The missing name? PolyMedix, a company that is developing drugs made by a proprietary computational drug design system to mimic natural germ-killing proteins found in humans. Similar defenses protect frogs and insects. Unlike traditional antibiotics, which must get through the cell walls or membranes of the germs, these compounds poke holes in the outside of the bacteria, killing them. Over millions of years, no bacteria are known to have developed resistance to this mechanism.

Sounds amazing, right? Well, here come the caveats: Wall Street is not that enthused. PolyMedix is traded over-the-counter and is well in penny stock territory, with a stock price of 82 cents and a market capitalization of $66 million. Those alone are warning signs that could keep most investors away. The company is conducting a 200-patient study to compare its drug against Cubist’s Cubicin. That is likely to provide the first clues as to whether this gutsy approach actually works. Chief executive Nick Landekic talked a good game in an interview, but I have my doubts both because Wall Street has written PolyMedix off (investors aren’t stupid) and because the approach is so novel. But it’s worth keeping an eye on.