Delivering on its self-delivering RNAi platform
Over the past year, Rxi Pharmac (O:RXII) has made significant headway with its pipeline as well as in securing partnerships. Its lead compound RXI-109 is in Phase II in dermatological scarring and is entering the clinic this year in retinal scarring in wet AMD. Phase II dermatology treatment Samcyprone was in-licensed, while a deal was struck with MirImmune for the out-licensing of its proprietary sd-rxRNA technology. We expect the company’s budding pipeline, recently simplified shareholder structure and deal-oriented strategy will continue to garner renewed investor attention and share price momentum. We value RXi at $91m or $1.40 per share.
Portfolio progressing with initiation of key trials
RXi is advancing three projects in clinical programs in the coming months. A Phase I/II trial for RXI-109 for the prevention of subretinal scarring in wet AMD should commence in 2015 on its newly FDA cleared IND. RXI-109’s lead indication of dermal scarring reports six-month data in early 2016 in the ongoing 1402 study, after recently announcing positive results of a three-month read out. We forecast peak sales of $1.5bn for RXI-109 in the dermal scarring market, which includes sales from reconstructive procedures and scar revision surgery, assuming payments are mainly out of pocket. RXi also plans the initiation of a Phase II trial with the recently in-licensed Samcyprone in common warts in the coming months.
Technology platform with out-licensing potential
RXi has developed a 'self-delivering' RNAi platform (sd-rxRNA), which it believes has advantages over conventional RNAi silencing, with the aim of achieving efficient spontaneous cell uptake, potent and long-lasting intracellular activity but lower immune activation. In preclinical studies RXi has demonstrated efficient cellular uptake of sd-rxRNA in tissues such as skin, retina, lung, spinal cord and liver. In March 2014, RXi out-licensed RXi’s sd-rxRNA technology to MirImmune for ex vivo use in developing cell-based cancer immunotherapies, signifying validation of RXI’s technology platform and paving the way for similar future agreements.
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