Replies to post #6114 on IntelGenx Technologies Corp (IGXT)

[crookedneck]

Great article FoDaLongHaul! Question for all. I was not aware that IGXT was partnered with JAZZ Pharma or was this an error - see red highlight below from excerpt of that article:

Tapping into Low-Risk Biotech and Specialty Pharma Stocks for Growth with Steven Palmer: TRL, ZMS, ZMSPF, MSL, MSLI, PLB, PLI, IGX, IGXT, JAZZ
26 Apr 2012
Category Biotechnology and Drugs, Healthcare, IGX, Investing, JAZZ, Market News, PLB, PLI, Sectors, Stocks, Trading, TRL, ZMS, ZMSPF
By George S. Mack

The somewhat obscure specialty biotechs and pharmas seek to add value by giving new life to older technologies and molecules. President and Chief Investment Officer Steven Palmer of AlphaNorth Asset Management embraces this strategy to generate exceptional returns while mitigating some of the risks inherent in drug development. In this exclusive interview with The Life Sciences Report, Palmer shares favorite life sciences names that could offer huge returns.

TLSR: Did you have one more that you could talk about?

SP: IntelGenX Technologies (OTC:IGXT, CVE:IGX) I like this one because it offers multiple avenues to success with multiple product lines. It is a drug delivery company, and it has three platforms. One is its immediate-release VersaFilm, which is placed on the roof of the mouth where it gets absorbed. One great benefit is that a drug can get into a patient’s system much more quickly than in pill form. It also has its mucoadhesive tablet, AdVersa, and its multilayer VersaTab controlled-time-release tablet. The company also has many drugs in the pipeline; some of them are later-stage drugs.

I like Intelgenx because the company has demonstrated that it can take a product right from the clinic through drug approval, which is what it did recently with the antidepressant drug CPI-300 (bupropion HCL, the active ingredient in Wellbutrin XL from GlaxoSmithKline (NYSE:GSK). This is a generic drug, but the company has devised a new dose. Instead of having to take two pills, you can just take one. It is well established that patients do better when they have fewer pills to remember to take each day. The company has recently partnered with Edgemont Pharmaceuticals (private) to commercialize CPI-300. It will get a $1M upfront payment and a double-digit royalty.

TLSR: I note that the company is also partnered with Jazz Pharmaceuticals (NASDAQ:JAZZ). When these drug delivery models work, they are very interesting, especially when they bring in double-digit royalties.

SP: The other thing that lowers risk with a company like this is that it is not trying to develop new molecules to cure diseases. This is just a drug delivery technology, where it takes existing drugs already shown to work and finds a better way to deliver the drug.

TLSR: Considering the tiny $24M market cap, double-digit royalty stream and multiple partners, it looks to have big market-moving potential.

SP: The potential gains with all of these companies are multiple times the money. I buy these not to generate a 20% return or anything like that. I’m looking for five times my money, plus.

TLSR: Steve, I’ve enjoyed speaking with you.

SP: Thank you very much.

Steven Palmer is a founding partner and chief investment officer with AlphaNorth Asset Management. He began his career in the investment industry in 1995. Prior to founding AlphaNorth in 2007, from July 1998 to August 2007, he was vice president of Canadian Equities, at one of the world’s largest financial institutions, where he managed the Canadian equity assets of approximately $350M. Palmer managed a pooled fund that focused on Canadian small capitalization companies from its inception to August 2007, achieving returns that were ranked #1 in performance by a major fund ranking service in its small-cap pooled-fund category (35.8% over nine years as compared to 10% for the S&P/TSX Composite Index and 13% for the BMO Weighted Small Cap Total Return Index over the same period). He also managed a large-cap fund that ranked in the first quartile of performance among other Canadian equity pooled funds for the following time periods: 1-year, 2-year, 3-year, 4-year, 5-year and 10-year. From September 1997 to July 1998, Palmer was employed as a portfolio manager at a high net worth investment boutique. Palmer started his career in January 1995 as a research associate and progressed to research analyst. He earned a bachelor’s degree in economics from the University of Western Ontario and is a Chartered Financial Analyst.

Want to read more exclusive Life Sciences Report interviews like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent interviews with industry analysts and commentators, visit our Exclusive Interviews page.