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zman4money (< 20)

Exciting Microcap Opportunity

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January 03, 2013 – Comments (0) | RELATED TICKERS: IGXT

 

Okay, I know what you are all thinking. Why would anyone invest in a penny stock when they usally have substantial risk. The reason is that many people cant decipher if a penny stock is a fraud, and this penny stock is only trading at a 32 million dollar market cap. The opportunity is amazing, and let me tell you why.

The company is IntelGenX Technologies, and it is very unique. Like I said, they are trading at a 32 million dollar market cap. The thing that is so amazing is that they have two FDA approved drugs, and their business model is a lot more conservative. This article http://seekingalpha.com/article/711581-intelgenx-striving-to... sums up their model, but basically they take established drugs, and implement their patented oral film technologies. This allows drugs that would normally require pills or multiple tablets to be taken simply by digesting a film. As a result, their drugs are more likely to be FDA approved by the slight modifications.

Risk Barriers:
The founder and CEO Zerbe holds 10% of the shares, which is a great sign. Something also that is extremely unique is that a hedge fund Blumont Capital has been accumulating shares, and they now hold 10% of the float as well. Investors can be confident that if a hedge fund and the CEO own 20% of shares, along with 2 FDA approved drugs, this company is legit. But what is also even more exciting is the future pipeline and the partnerships IGXT has set up with other companies. Insider ownership is at 23%, and IGXT has a 350k burn rate per quarter while having 2.3 million in the bank. As an example with their most recent launch Forfivo, IGXT looks to create the new drug, and then partner with other companies to manufacture and market the drugs. In essence, IGXT lowers their potential gains, and also their risk as with Forfivo, they can recieve up to 5 million for their launch, and then royalties up to 23.5 million, and then double digit royalties of net sales.

Unique Opportunity:
IGXT has 10 drugs in their pipeline that are all expected to launch by 2016. Some of these drugs have the potential to be big, while one drug is being co developed by Par Pharmaceuticals (PRX)and they have kept information private to keep their competitive edge. For example, the Erectile Dysfunction drug is projected to receive 120 million in revenue during year 6 after the launch. Remember, these are modifications to drugs so they are extremely more likely to get passed by the FDA, but they also have not yet been approved. But with 2 drugs already approved, it is evident that IGXT knows what they are doing. Their most recent launch of FDA approved Forfivo in 2012 is partnered with Edgmont Pharmaceuticals, I already mentioned the partnership with Par Pharmaceuticals, and they also have a partnerships with 5 others.

Zman(Anxiously looking for a conversation and they with other Fools, and Im long Igxt at 0.58)


Company Website Presentation: http://www.intelgenx.com/investors/presentations.html I strongly urge Fools to at least take a look at the investor presentation.

 

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