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Biopharmx Corp (NYSEMKT:BPMX) Is Fully Funded And Ready To Run

Biopharmx Corp (NYSEMKT:BPMX) Is Fully Funded And Ready To Run
Written by
Chris Sandburg
Published on
February 1, 2017
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Biopharmx Corp (NYSEMKT:BPMX) has been a real runner year-to-date, with the company gaining from $0.38 a share on January 3 to $0.48 a share at last close. Underpinning this close to 30% gain are a number of operational updates, spread across the period in question, relating to a range of different aspects of the company's fundamentals.As longer-term holders will no doubt already be aware, Biopharmx had a pretty rough 2016, so the recent gains have served to offer some degree of reprieve on the value-loss seen throughout last year. We think this company is finally moving towards a longer-term recovery, and that the recent upside run is indicative of said longer-term turnaround.Here is a look at the latest announcements, and what we're looking for going forward as supportive of this suggestion.The company's lead development asset (at least, that is, from a valuation perspective) is a dermatology product called BPX-01. It is a topical cream currently under investigation in a primary indication of acne vulgaris. The drug is reportedly the first and only stable hydrophilic (which just means that it is non-oil-based) topical gel with fully solubilized minocycline that can penetrate the skin to deliver the antibiotic to where acne develops in the pilosebaceous unit. Minocycline is an already approved drug used to treat the whole range of different conditions, including urinary tract infections, respiratory infections, skin infections, severe acne, gonorrhea, tick fever, chlamydia, and others. The company is hoping that by incorporating the active compound into a topical gel, it can improve upon the efficacy of the currently available administration methods.Data from a phase 2a trial hit press early last year, and pointed towards strong clinical benefit. There is a phase 2b trial (the follow-up to the phase 2a) ongoing right now, and it is from this trial that most of the latest news from the company derives. Early January, Biopharmx reported that it had completed enrollment in the study, having reached a total of 225 individuals, aged 9 to 40, who have moderate-to-severe inflammatory, non-nodular acne vulgaris.Now enrollment is complete, and a couple of small to medium impact presentations aside, the major catalysts are going to come from the developments associated with this study. Specifically, the trial is expected to close out at some point over the next three or four months, with a top line readout scheduled for before the first half of this year draws to a close. Patients are under investigation for a total of 12 weeks, so it is a pretty quick study, allowing for an equally quick turnaround on the results.So what are we looking for? Well, of course, we're looking for the trial to hit its endpoints when the data comes in. There's a primary and a secondary that we see as requiring hits. The first, the primary endpoint, is absolute mean change from baseline in inflammatory lesion counts at week 12. The secondary endpoint is the proportion of subjects with at least a two-grade reduction in Investigator's Global Assessment at week 12. IGA is industry standard and relates to severity, so with these two endpoints, the company is basically asking: how many lesions are visible, and how severe are they?Then, these results are compared to baseline, so if there are less lesions visible the primary is hit, and if the visible lesions are less severe, the secondary is hit.It seems pretty simple when we put it like that, but if Biopharmx can hit on both of these endpoints, there is a minimum low double-digit percentage market capitalization gain in it for the company and its shareholders. Why? Because it would pave the way for a pivotal trial (or two pivotals, as is generally the case in these sorts dermatology indications) and, beyond that, commercialization.Biopharmx closed a $12.5 million offering in November, which resolved a serious cash deficit issue, and is now fully funded through to the end of the above discussed trial.We will be updating our subscribers as soon as we know more. For the latest updates on BPMX, sign up below!Disclosure: We have no position in BPMX and have not been compensated for this article.

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