* HUGE RECENT CONTRACT ANNOUNCEMENT WORTH ABOUT $83 MILLION (OVER $1/SHARE). * IMPRESSIVE PIPELINE OF NEW PHARMA PRODUCTS. * CASH-RICH.....NO LONG-TERM DEBT. * EXTREMELY UNDERVALUED BASED ON NEW CONTRACT, PRODUCT PIPELINE, and CASH * UPGRADED IN EUROPE.
Are you kidding me?.. The current enterprise value is only $29 million for a company with $40M in cash and $83M in new research funding.. plus royalties!!! on ONE product line alone?...AND A HUGE PIPELINE OF NEW PRODUCTS TO BOOT??
Xenova, market cap of only $74 million, recently traded over 12 million shares in one day after the announcement of an $85 millon dollar deal. This is itself is over $1/share.
More impressive however, is its huge pipeline of new products in addition to the one responsible for today's huge contract.
For instance, Xenova is carrying out a large placebo-controlled trial of TA-CD, involving 130 patients, the results of which are due in 18 months. If successful, the company could gain fast-track approval and launch the vaccine in 2007 or 2008. The TA-CD product is aimed at treating cocaine addiction. The market for this product is huge amounting to potentially $billions/year worldwide.
Xenova is also into cancer research and other key medical research areas. Earlier this week, Xenova issued a PR announcing that it has licenced its cervical-cancer technology to Cancer Research Technology:
I can go on and on about about Xenova's impressive product pipeline and intellectual property, but I'll let you do the rest of the DD if you were looking for an (still) affordable great short and long-term winner.
About Xenova:
Xenova Group plc is a U.K.-based biopharmaceutical company focused on the development of novel drugs to treat cancer and addiction with a secondary focus in immunotherapy. The Company has a broad pipeline of products in clinical development, including three cancer programmes: its lead product TransMIDTM, for the treatment of high-grade glioma, is in Phase III trials, and its novel DNA targeting agents and XR303 are both in Phase I for cancer indications. Xenova is also developing two therapeutic vaccines for cocaine and nicotine addiction, which are in Phase II and Phase I trials respectively. Quoted on the London Stock Exchange (XEN) and on NASDAQ (XNVA), Xenova employs approximately 75 people throughout its sites in the UK and North America. (Reuters XEN.L; Bloomberg XEN LN) For further information about Xenova and its products please visit the Xenova website at www xenova co uk and www gbmtrial com.