Shares of Resverlogix (RVX.TO and RVXCF) have been on the move, making a nice climb off recent lows. After closing at $1.30 on October 31st 2017, it seems the Halloween ghosts and goblins scared the bears away and as of this writing shares are trading over $1.50 for a gain of more than 15% in just the past month.
What's behind it?
Investment from China may be driving some of the interest. Shenzhen Hepalink is investing $87 million CDN into the company, which takes them to a 43% stake of this Calgary Biotech engaged in the exciting field of Epigenetics.and BET Inhibition.
Resverlogix's lead compound is Apabetalone, and it is currently in a Phase III clinical trial called BETonMACE which is aimed at proving that Apabetalone in combination with Statins will reduce the time to Major Adverse Cardiac Events versus treatment with Statins alone for treatment of patients with Diabetes Mellitus.
Resverlogix's lead compound is Apabetalone, and it is currently in a Phase III clinical trial called BETonMACE which is aimed at proving that Apabetalone in combination with Statins will reduce the time to Major Adverse Cardiac Events versus treatment with Statins alone for treatment of patients with Diabetes Mellitus.
$87 million might sound like a lot, even in Canadian funds, but for the founders of Shenzhen Hepalink it probably isn't a huge sum. Not after that company went public back in 2010, which made Li Li and Li Tan the richest couple in China at the time.
Shenzhen Hepalink is reported to be the world's largest producer of Heparin, a blood thinner.
And Shenzhen Hepalink isn't the only big player with a stake in Resverlogix. Eastern Capital, the investment arm of billionaire Kenneth Dart is also a major holder, along with NGN Capital and the company's CEO Donald McCaffrey.
In Canada Resverlogix trades on the TSX with the symbol RVX. In the United States shares trade OTC with the symbol RVXCF. There may be a lot more upside for RVX yet. In a recent report analyst David Kideckel of Beacon Securities set a 12 month target price of $8.55 CDN.
Coverage Initiated on 'One of the Most Undervalued Biotech Companies in Canada
Disclosure, I am a shareholder so view my opinions in that light and verify all information. Please read the disclaiming statement at the very bottom of this blog site.
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