Will GETA be another 10 Baggers in Early 2010?
February 08, 2010
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This is my first pick from OTC Bulletin Board. I believe that this pick has a high possibility to be another10 baggers in early 2010.
Some people say that the 2009 stock market rally was attributed to small cap companies. I agree with it to some extent. If you statistically analyze the performance of S&P 500 companies in 2009, you will find out that small cap companies below 1 billion dollars as a whole outperformed those above 1 billion dollars with a double digit percentage.
While stocks in NASDAQ & NYSE become stable in the New Year, is it the time for people to switch their concentration to OTC Bulletin Board for future potential 10 baggers? If you take a look at IMGG & VKNG, you will realize that this is an area where high quality gold is waiting for you to mine.
GETA has a high possibility to be next brilliant star among these OTC top performance stocks. It is not only because that the stock price is way undervalued, but also because that short-term vital catalysts may boost its stock price and make it another myth of stock market.
Introduction: Genta Incorporated (GETA) is a biopharmaceutical company with a diversified product portfolio that is focused on delivering innovative products for the treatment of patients with cancer. Two major programs anchor the Company's research platform: DNA/RNA-based Medicines and Small Molecules.
Please take a look of the link hereunder for the company’s product and pipeline:
http://imgur.com/3BIyH.jpg
How will GETA be the next 10 baggers? My takes:
1, GETA already has a FDA approval drug Granite. Ganite is intravenous formulation of gallium, for the treatment of cancer-related hypercalcemia that is resistant to hydration. About 90% of the hypercalcemia is due to malignant tumors and hyperparathyroidism, and about 10% to 20% of tumor patients have hypercalcemia. This is a huge market for GETA to exploit.
GETA has been marketing Granite since the drug got approval from FDA, but now seeking a buyer due to financial hardship. Once the company finds a deal, we expect that GETA will at least doubles or even triples its stock price.
2, When GETA released the unsatisfactory result of its AGENDA phase 3 trial of Genasense in patients with advanced melanoma last Oct., the company’s stock price dropped like to rock to current 11 cents.
GETA is now continuing on the development of Genasense, the company’s lead drug candidate for the treatment of advanced melanoma and relapsed or refractory CLL.
GETA had submitted applications for regulatory approval in the U.S. and EU, but none of these applications got marketing approval. Nonetheless, the company believes that Genasense will ultimately be approved and commercialized and the company is taking effort to further develop Genasense for regulatory resubmission.
Based on my many years experience in the healthcare sector and long-term research of GETA, I agree that once the company get financial support and keep working on the trial in EU, it is very possible that GETA will eventually get a nod from EMEA. And after that GETA can continue to seek for FDA approval in the US. This is a more realistic and efficient way, and we have already seen a lot of successful examples following this way. EPCT is one of the good examples.
It will be the time for GETA to go back $1 level if AGENDA finally gets regulatory approval
3, FDA lifted clinical hold of GETA’s drug candidate Tesetaxel in 2008. Tesetaxel is a novel oral semi-synthetic taxane. Taxanes have been formally approved by FDA for the treatment of breast, lung, ovarian, gastric, and prostate cancers.
In Jan 2009, GETA initiated a new clinical trial with Tesetaxel to examine the clinical pharmacology of the drug over a narrow dosing range around the established Phase 2 dose, and this study is expected to be completed in the fourth quarter. Counted data collection and analysis time, news should be released soon. This is another good opportunity for GETA to regain its stock price.
Tesetaxel has been granted the orphan drug designation by FDA for treatment of patients with advanced gastric cancer and for patients with advanced melanoma.
4, GETA also has another drug candidate G4544 (Gallium-containing compound) for the treatment of acutely life-threatening diseases, such as cancer-related hypercalcemia, as well as for diseases with less extreme bone loss, including bone metastases, Paget’s disease, or osteoporosis.
It is apparent that GETA doesn’t has sufficient fund for the further development of G4544, but the company currently intends to develop plans for future clinical development in oncology, and the Company is seeking a partner for development in osteoporosis and Paget’s disease.
If GETA can find a deal like OPXA & ATHX, we will not only see that the company pulls through the financial hardship, but also see the elevation of its stock price.
There were around 7.4M cash and cash equivalences in GETA’s third quarter balance sheet, and this is only enough for GETA to go into second quarter of 2010 without further financing. But I believe that GETA can get institutional investment and get rid of the financial hardship easily if the company comes out with good news of Tesetaxel’s clinical trial. We have seen so many cases with similar situation.
From Feb 8-9 (Monday&Tuesday), GETA will attend the 12th BioCEO Investors Conference. This is a pageant of the medical world, and it is also a good opportunity for GETA to get attention of Pharmaceutical Giants and institutional investors. I believe that no matter Ganite, Genasense, Tesetaxel, or G4544 is attractive enough to get a deal in this pageant. Once we get positive news, it is the time to realize my target:
My personal short-term target: $0.50; one year target: $1
No matter what point of view, GETA’s current stock price 0.11 is grossly undervalued. Tesetaxel alone is worth of the whole market capital.
*Disclaimer: The author of this post is not a licensed analyst and the purpose of it is for information sharing and discussion only, not recommendation for any stock buying and selling activity. Please do your own decent research before making any trading decision.
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