Diamond Equity Research, a leading equity research and corporate access firm with a focus on small capitalization public companies has initiated coverage of Genprex Inc.
NEW YORK, July 02, 2018 (GLOBE NEWSWIRE) -- via NetworkWire – Diamond Equity Research, a leading equity research and corporate access firm with a focus on small capitalization public companies has initiated coverage of Genprex, Inc. (NASDAQ:GNPX). The in-depth 27-page initiation report includes detailed information on Genprex ‘s business model, services, industry, valuation, management, and risks.
The full research report is available here. Highlights from the report include:
Large Market Opportunity
Genprex is a clinical stage gene therapy company developing a novel approach to cancer treatment, with its initial product candidate targeting lung cancer. According to the World Health Organization, there are over 1.8 million new lung cancer patients and 1.6 million deaths from lung cancer worldwide [1]. Among these cases, approximately 80 percent were Non-Small Cell Lung Cancer (NSCLC). Genprex is targeting the NSCLC market with its Oncoprex™ immunogene therapy or Oncoprex™. With lung cancer continuing to be the leading cause of cancer related death in the world, new treatment options are critical, with Genprex potentially offering a novel treatment option for patients.
Genprex’s lead product, Oncoprex™, has completed its Phase I clinical trial and is currently conducting a Phase II trial. To date, the response rate and disease control rate in the Phase II portion of the company’s Phase I/II clinical trial substantially exceeded the response rate of 7 percent (with no CRs) and disease control rate of 58 percent reported for a clinical trial of the TKI afatinib (marketed as Gilotrif® by Boehringer Ingelheim Pharmaceuticals, Inc.) in a study referred to as the LUX-Lung 1 clinical trial [1].
In a recent company update, Julien L. Pham, MD, MPH, President and Chief Operating Officer, stated, “We believe that Oncoprex™ may provide medical benefit in several subpopulations of NSCLC for which there is an unmet medical need and may provide pathways for expedited approval by the FDA.”
Unique Cancer Treatment Approach
Genprex is developing an innovative and unique approach to treating lung cancer by administering cancer fighting genes in nanoscale hollow spheres called nanovesicles. Genprex has a multimodal mechanism of action which interrupts cell signaling pathways responsible for the spread of cancer. Oncoprex™ also potentially can block various mechanisms which result in drug resistance.
Attractive Valuation
It is very difficult to value Genprex Inc. given its early stage and the limited number of public listed companies engaged in the development of immunogene therapies for non-small cell lung cancer (NSCLC). In our technology value analysis, we selected small capitalization companies within the biotechnology industry targeting similar indications and at similar stages of development. We estimated a forward-looking market value using the peer group average and median market value of each unique drug in their clinical trial stages. We also built a top down model and discounted cash flow to value Genprex. From our analysis, we found the shares to be undervalued with significant upside from current trading levels. Based on an average of the two methods, we computed a valuation of $13 per share, indicating the stock is undervalued.
About Genprex Inc.
Genprex Inc is a clinical-stage gene therapy company developing a new approach to treating cancer, based on the novel proprietary technology platform, including its initial product candidate, Oncoprex™ immunogene therapy for non-small cell lung cancer (NSCLC). The company was founded in 2009 and is headquartered in Austin, Texas.
For more information, visit http://ir.genprex.com/.
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on premiere institutional investor platforms including Factset, Morningstar, and Thomson One. The founder, Hunter Diamond, CFA, brings extensive experience working as a research analyst and investment banker focused on emerging growth companies. Hunter Diamond, CFA holds his Bachelor of Science and Master of Business Administration from Cornell University. The firm is headquartered in midtown Manhattan.
For more information, visit www.diamondequityresearch.com.
Disclosures:
Full disclosures pertaining to this report can be found at the end of the report and on the Diamond Equity Research website disclosure section. Genprex Inc. has paid for this report as company sponsored research, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. Diamond Equity Research LLC is being compensated by Genprex Inc. for producing research material consisting of an initiation research report regarding Genprex Inc. and its securities over a one-month period. All payments are received upfront. As of 07/02/2018 the issuer had paid us $10,500 for our services, which commenced 06/11/2018. Additional fees may have accrued since then.
Contact:
Hunter Diamond, CFA
Diamond Equity Research
research@diamondequityresearch.com
1. Varner, R. (2018, June 15). Amendment No. 1 to Form S-1. Retrieved from https://www.sec.gov/Archives/edgar/data/1595248/000119312518194621/d591407ds1a.htm
