Seeking Alpha spricht heute strong buy aus. Was meint ihr? Mit einer Position bin ich drin.
Soligenix Inc. / SNGX
A Biotech Bargain Ready To File For Approval In Cutaneous T-Cell Lymphoma
Oct. 05, 2022 9:40 AM ETSoligenix, Inc. (SNGX)
Soligenix is an underfollowed biotech company trading at a $20 million market cap.The company is about to file an NDA for HyBryte, which I expect to become a first-in-class treatment in cutaneous T-cell lymphoma.The company’s heat-stable vaccine development program has shown success against ricin, Marburgvirus, ebolavirus and Covid infections. some of the biggest biowarfare and viral threats in the world.The company is a very strong buy for me given HyBryte’s room for commercial growth, and the market’s complete underappreciation of its public health platform.
Soligenix (NASDAQ:SNGX) is an underfollowed small biotech company with two business segments. The first business segment essentially develops drug candidate HyBryte or synthetic hypericin for cutaneous T-cell lymphoma, psoriasis and possibly other indications. The second business segment develops vaccines for some of the world’s top-listed pandemic, outbreak and biowarfare threats. The company had last been covered on Seeking Alpha in October 2020 and seems to be very much under-the-radar.
The Phase 3 trial for HyBryte in cutaneous T-cell lymphoma showed a statistically significant treatment response after 6 weeks, with deepening responses over 12 and 18 weeks of treatment. In case of approval, HyBryte would fill an unmet medical need as a potential first-line treatment. I see a very large divergence between its current market price and its growth and revenue potential upon approval in the US and beyond. The company itself estimates its peak sales for the US alone at $90 million, and I believe that estimates are actually fairly moderate in view of the size of the total addressable market and sales of earlier treatments. A moderate 6x sales multiple for the US alone, merely for HyBryte, holds the potential of a +$500 million valuation in the years to come.
The company’s second segment, funded so far by government grants and contracts in a non-dilutive manner, is built around ThermoVax, a platform for the development of up to 40° C. heat-stable vaccines. There are obvious advantages related to the making of such vaccines, and this did not go unnoticed by the government and defense authorities, which basically funded this segment up to this point. The vaccine candidates in development comprise a ricin toxin vaccine, a Marburg and Ebola filovirus vaccine, and a Covid-19 vaccine. All three vaccine candidates in development have at this point generated strong and consistent results in four indications. They are all top-listed biowarfare threats and drug candidates for a future possible outbreak.
The company had about $20 million in cash at the end of the last quarter, with a low cash burn and seemingly constant public funding. There appears to be quite some room for growth with approval and commercialization starting in the next years.