Whether you are a seasoned investor or new to the market, microcap biotech stocks are a great place to invest. They are often undervalued and can be bought cheaply. Here are a few companies you should know about.
Moderna (MRNA)
Investing in Moderna (MRNA) could be a good choice. This microcap biotech stock is trading at a deep discount to intrinsic value. It has a high Relative Strength Rating (RSR) of 91, and is trading at a low EPS Rating of 16. The stock is a buy on the strength of its growing therapeutic portfolio and strong pipeline of vaccines. However, investors will watch to see how the company manages post-Covid efforts.
Moderna is a growth biotech that leverages mRNA technology to make drugs and vaccines. The company has preclinical studies for autoimmune diseases, heart conditions, and rare diseases. In addition, the company is testing vaccine-based drugs with Merck’s cancer immunotherapy blockbuster Keytruda.
The company’s vaccines include the Covid shot, which is approved for people aged 16 and older. The company is also testing its mRNA-1647 vaccine in healthy adults. However, the vaccine is still in Phase 1 clinical trials, which involve fewer subjects. The company is also working on different delivery modalities into different cells.
Moderna is pursuing a number of other pipeline projects. It is working with Merck on an omicron-blocking vaccine for young children, an updated omicron-blocking booster for adults, and an immunotherapy treatment for melanoma. These efforts are expected to produce revenue in the coming years.
The COVID vaccine is already showing early success. Moderna estimates 25,000 newborns in the U.S. are infected with the virus each year. It hopes to offer a vaccine for children between the ages of 6 and 17.
Moderna’s pipeline includes four assets in Phase 3 trials. In addition, it has 46 preclinical studies underway.
Aerovate Therapeutics
Founded in 2018 and based in Waltham, Massachusetts, Aerovate is a microcap biotech stock that has raised a little more than a hundred million dollars in an initial public offering (IPO). In the biotech world, a microcap stock is a company with a market capitalization of less than $300 million. Despite the small cap, a biotech company can be a high-growth and high-profit company.
The company focuses on the development of drugs for rare cardiopulmonary diseases. Its initial focus is on a dry powder inhaled formulation of imatinib for pulmonary arterial hypertension (PAH). AV-101 has half-life extension technology that may make it more effective than a competing drug. The company will report results from a Phase 2b trial in mid-2023.
Among other things, Aerovate is also developing a second-generation candidate that uses a subcutaneous administration. The company plans to file an IND for VRDN-001 in October 2021. The company also recently announced a 30% workforce reduction. In the grand scheme of things, the company’s Phase 3 CHABLIS-SC1 trial failed to show that imatinib is effective at reducing the risk of cardiovascular events.
One of the biggest draws to the biotechnology sector is that it provides the opportunity for investors to capitalize on new advances in science that lead to better treatments and prevention methods. Aside from the obvious, the biotechnology sector also comes with its fair share of risks. Fortunately, with the right research, investing in the biotechnology space can be an excellent way to increase your wealth.
VolitionRX Ltd.
Located in Hendersook, Washington, VolitionRX Ltd is a clinical stage life sciences company focused on the detection and monitoring of disease in humans and animals. It has a small but impressive suite of research and development centers in California, Belgium and Singapore. The company is a 3M+ company, i.e., it has an office in each of the three countries.
VolitionRX has a well-rounded suite of products, from HyperGenomics tissue tests to the Nu.Q(r) vet cancer screening test. The company also has an innovation hub in California and a small but growing research and development presence in Belgium. The company has also landed an exclusive global supply and licensing agreement with Heska Corporation. In addition, the company recently announced the opening of its first U.S. laboratory, as well as the appointment of Sharon Ballesteros as its first U.S. head of quality and development. The company has also landed a distribution deal with SAGE Healthcare Private Limited. In the ensuing months, the company has also taken the wraps off of its first clinical trial, a slew of research and development publications, a new head of scientific affairs and an impressive new office in Singapore.
The company also announced the laudable ole’s name, a study to assess blood biomarkers in the early detection of lung cancer. In addition, the company has a couple of other nifty-looking patents in the works.
AudioCodes Ltd.
Founded in 1992, AudioCodes specializes in providing advanced data networking and communications software, hardware and services. It serves customers across the globe, including those in the US, China, France, India and the U.K.
The company’s products and services include multi-service business routers, session border controllers, and VoIP network routing solutions. It also offers products and services for unified communications, contact centers, enterprise mobility, and telephony. In addition, it offers a wide range of professional services and value added applications. Among its products, the company is best known for its Signal Processor Chip (SPC), which enables converged VoIP solutions to be easily integrated into existing networks. It is also a leader in VoIP technology, offering hybrid platforms that interface with SIP trunks.
The company also manufactures a few ancillary products. They include a few signal processor chips, which are the mainstay of its converged VoIP solutions. This company also manufactures a handful of products for data over the internet, including media gateways, value-added applications, and professional services. These products are also sold to system integrators, OEMs, and channel partners.
Other notable products include the RX50, a sleek and slick conference phone that delivers an excellent audio quality in any room and the corresponding Microsoft Teams certified solution. The RX50’s best feature is its ability to deliver a superior meeting room experience and to make centralized control of session routing decisions a cinch.
Exelixis
During the last five trading days, Exelixis (EXEL) shares have plunged 21%. This is a result of the company reporting disappointing clinical trial results. Several analyst firms have lowered their price targets. However, the stock is trading at a relatively reasonable price of 15 times expected EPS. This could increase if Exelixis is able to expand its quarterly sales quickly.
Exelixis is a biopharmaceutical company that develops new cancer medicines. Its crown jewel is cancer drug Cabometyx. In recent years, the drug has helped Exelixis revenue and overall profitability grow. However, Cabometyx is just the start of Exelixis’s clinical pipeline.
Exelixis’ top line increased 45% year over year in 2021. The company is aiming to spend $875 million on research and development this year. It will also spend $10 million upfront for exclusive options to license three preexisting programs. In addition, Exelixis will initiate three Aurigene-led drug discovery programs.
Exelixis management expects to hear back from the FDA by November 29. They have plans to file for approval of Cabometyx for use in first-line advanced kidney cancer patients. This would expand Exelixis’s Cabometyx label and market share to over 35%. If Cabometyx does receive approval, it would mean hundreds of millions of dollars in additional sales.
Exelixis has a cash position of more than $1.6 billion, which represents more than 20% of the company’s market cap. It also has over $200 million in marketable securities.
Lixte Biotechnology
Founded in 2005, Lixte Biotechnology Holdings is a clinical stage drug discovery company focused on developing pharmacologically active drugs for cancer treatment. The company has two drug series that are currently in development. Its lead clinical compound is LB-100, which is a protein phosphatase 2A (PP2A) inhibitor.
Its drugs target several types of cancer and have the potential for treating vascular diseases, metabolic disorders, and chronic hereditary diseases. The company also uses biomarker technology to identify enzyme targets, and it is in the process of commercializing its drugs.
The company’s lead compound is LB-100, which has the potential to become a game changer in cancer treatment. It is a protein phosphatase inhibitor that can be used in combination with standard anti-cancer therapies. The company recently announced positive preclinical and clinical results with LB-100. In a Phase 1b clinical trial of LB-100 and vosoritide, LB-100 increased the effectiveness of cancer immunotherapy.
The company plans to raise $9 million by issuing 1.5 million shares at prices ranging from $5.75 to $6.75. In addition, it plans to present at a pharmaceutical and biotechnology investor conference from March 28 to April 1, 2022.
The company is also in the process of enrolling patients in its Phase 1b/2 trial of LB-100. The company also announced that it has received National Cancer Institute approval to enroll patients in its clinical trial.
Lixte Biotechnology Holdings, Inc is a microcap biotech stock, with a market capitalization of less than $300 million. It has 23 institutional owners, including Geode Capital Management, Llc, Sabby Management, Llc, Morgan Stanley, Vanguard Group Inc., and Santa Monica Partners Lp.
