OncoGeneX’s (OGXI - $2.98) stock collapsed in the last four months,
losing almost 80% in market value after reporting that its lead asset, the
antisense drug custirsen, failed in a pivotal phase III prostate cancer trial.
Sporting a market cap of just $60 million and holding more than enough days’
cash on-hand to fund visible clinical catalysts for a second drug that might
prove useful in combination with chemotherapy, the company could make for an
interesting turnaround play
OGXI is a speculative, micro-cap oncology company – now,
essentially a call option with multiple shots on goal: $60 million in
cash/equivalents provides a backdrop to a market capitalization of just $60
million; excluding dilutive effect of outstanding options and warrants, and OGXI
trades essentially at cash.
Despite an off-putting non-response from management (detailed in
article), risk-tolerant investors can own OGXI at its all-time lows ahead of
incremental value-driving events. ESMO 2014 may provide hope for failed
lead candidate, custirsen, as management should present further analysis from its
phase 3 SYNERGY trial. A positive efficacy signal in a subset of patients
may drive interest in OGXI once again, ahead of more catalysts into early
2015.
