Biotech Values

[DewDiligence]

INHX/IDIX/VRUS—INX-189 is still going to be way behind in the clinic and likely not differentiated, which is not a formula for success.

Based on today’s INHX CC, I question how serious the company is about this program. INHX’s CEO stated on the CC that he expects to entertain partnership offers for INX-189 based on only the animal-tox data and the 3-day monotherapy data from phase-1b, which will be ready in 1Q11. I question the CEO’s statement because 3-day monotherapy data for an HCV drug is not especially illuminating.

INHX also has liquidity issues insofar as the cash balance at 6/30/10 was only $29M (http://finance.yahoo.com/news/Inhibitex-Reports-Second-bw-845702482.html?x=0&.v=1 ). On the other hand, the enterprise value at the current share price is less than $100M, so any positive development could produce a nice pop. In addition to INX-189, INHX has a phase-2 compound for shingles.