{"id":45855,"date":"2021-12-09T07:10:00","date_gmt":"2021-12-09T12:10:00","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/?p=45855"},"modified":"2021-12-09T07:10:00","modified_gmt":"2021-12-09T12:10:00","slug":"top-ideas-in-the-small-cap-biotech-space-inmb-otlc-dvax-sava-icpt-imgn","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/top-ideas-in-the-small-cap-biotech-space-inmb-otlc-dvax-sava-icpt-imgn-45855","title":{"rendered":"Top Ideas in the Small Cap Biotech Space (INMB, OTLC, DVAX, SAVA, ICPT, IMGN)"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The small cap biotech space offers a powerful dimension for active investors because it is comprised of stocks with little or no consistent correlation with the broad market, creating diversification without sacrificing explosive upside potential.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the group is best handled in baskets. In other words, investors may stand to benefit from cultivating exposure to a handful of small cap biotechs with compelling pipelines because, at some point, if the basket is well selected, at least one of them is going to strike it big with a drug targeting a big healthcare need. When they strike gold with one of their assets, stocks in this space have the potential to produce massive and sudden moonshot returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And it only takes one such outcome to pay off the bet on the entire basket.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, as alluded to above, these kinds of outcomes can happen at any time, whether the S&amp;P 500 is in a bull or bear market. With this in mind, we take a look below at some of the most interesting stories in the small cap biotech space right now.<\/span><\/p>\n<p><b>Dynavax Technologies Corp. (Nasdaq:DVAX)<\/b><span style=\"font-weight: 400;\"> operates as a biopharmaceutical company, which engages in the discovery, development, and commercialization of novel vaccines and immuno-oncology therapeutics.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company\u2019s product line includes HEPLISAV-B, which prevents infection caused by all known subtypes of hepatitis B virus in adults 18 years of age and older.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dynavax Technologies Corp. (Nasdaq:DVAX) recently reported financial results for the third quarter ended September 30, 2021 and provided a business update. A significant idea in the company\u2019s release was about its strategy to expand the use of its CpG 1018 adjuvant platform and proven technology in multiple modalities of vaccine development.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As discussed by the company, through global partnerships, multiple data read outs for late-stage clinical trials of COVID-19 vaccine candidates adjuvanted with CpG 1018 generated impressive efficacy, immunogenicity and tolerability results. These clinical results enhance the data supporting CpG 1018&#8217;s ability to help enable new and improved vaccines that are effective and well-tolerated. This is especially important given the potential, highlighted by the recent emergence of the Omicron variant, for new vaccines to be needed in very short order.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn&#8217;t been the type of action DVAX shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -5% on above average trading volume. All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Dynavax Technologies Corp. (Nasdaq:DVAX) managed to rope in revenues totaling $105.9M in overall sales during the company&#8217;s most recently reported quarterly financial data &#8212; a figure that represents a rate of top line growth of 689.3%, as compared to year-ago data in comparable terms. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($414.2M against $528.9M, respectively).<\/span><\/p>\n<p><b>Oncotelic Therapeutics Inc (OTC US:OTLC)<\/b><span style=\"font-weight: 400;\"> is the smallest market cap name in our basket today \u2013 at about $63 million. But it may actually be the most promising from a future growth potential angle. The company has developed a first-in-class anti-TGF-\u03b2 RNA therapeutic, OT-101, that has exhibited single agent activity in relapsed\/refractory cancer patients. OT-101 also has shown activity against SARS-CoV-2 and has completed a phase 2 trial against COVID-19, with data analysis in progress. As a Covid asset, it should function agnostic of variants, which is obviously becoming an increasingly important factor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It also recently announced the launch of a phase 2 trial for OT-101 in combination with Keytruda, a leading anti-PD-1 drug owned by biopharma titan Merck &amp; Co., Inc. (NYSE:MRK), as a treatment for patients with Malignant Pleural Mesothelioma (MPM).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Oncotelic Therapeutics Inc (OTC US:OTLC) was also recently featured in an interesting article published on <\/span><a href=\"https:\/\/www.asbestos.com\/news\/2021\/12\/07\/mesothelioma-trial-covid-19-drug\/\"><span style=\"font-weight: 400;\">Asbestos.com<\/span><\/a><span style=\"font-weight: 400;\">, a web outlet sponsored by The Mesothelioma Center. The piece provides excellent perspective on the OT-101 program under development at OTLC, noting that the company\u2019s anti-TGF-\u03b2 RNA therapeutic could work to sharply boost the efficacy of checkpoint inhibitors like Keytruda, improving outcomes in not only mesothelioma, but a variety of other cancers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe\u2019re excited about the potential. There is a huge unmet medical need with mesothelioma. The hope is that we can use this to increase the response to checkpoint inhibitors,\u201d Dr. Anthony Maida, chief clinical officer at Oncotelic, told The Mesothelioma Center at Asbestos.com. \u201cThe goal is to help these patients live longer, better lives.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Shares of OTLC have started to take off over the past two weeks, rising as much as 60% on a significant jump in trading volume over that period. The move featured a powerful breakout above the stock\u2019s key 50-day moving average, which has now turned higher, presenting a very strong technical signal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Oncotelic Therapeutics Inc (OTC US:OTLC) was also recently featured in an in-depth coverage <\/span><a href=\"https:\/\/www.otcmarkets.com\/financialReportViewer?id=314866\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> from independent analyst firm, Litchfield Hills. The fundamental analysis report rated the stock a \u201cBuy\u201d and assigned a price target of $4\/share, which would represent further upside of more than 2,400% from current levels. Among other key points, the report notes that \u201cthe OT-101-ONC program has been moving forward steadily through strategic alliances with top pharmaceutical companies. Of note is the biomarker program spanning mesothelioma, glioblastoma, lung and colorectal cancers, where AI driven transcriptome analyses will be used to derive the predictive biomarker for TGF-\u03b2 therapeutics such as OT-101.\u201d<\/span><\/p>\n<p><b>Immunogen Inc. (Nasdaq:IMGN)<\/b><span style=\"font-weight: 400;\"> bills itself as a firm developing the next generation of antibody-drug conjugates (ADCs) to improve outcomes for cancer patients<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, the company engages in the discovery and development of antibody-drug conjugates to improve outcomes for cancer patients. Its pipeline includes Mirvetuximab Soravtansine, IMGN632, IMGC936, and IMGN151.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Immunogen Inc. (Nasdaq:IMGN) recently announced positive top-line data from the pivotal SORAYA trial evaluating the safety and efficacy of mirvetuximab soravtansine (mirvetuximab) monotherapy in patients with folate receptor alpha (FR\u03b1)-high platinum-resistant ovarian cancer who have been previously treated with Avastin (bevacizumab).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;Despite advances in the platinum-sensitive setting, most patients with ovarian cancer eventually develop platinum-resistant disease, for which there are limited treatment options, especially for those patients who have previously received bevacizumab,&#8221; said Robert Coleman, MD, Chief Scientific Officer of US Oncology Research and SORAYA Co-Principal Investigator. &#8220;Data from SORAYA have the potential to redefine the standard of care for patients with FR\u03b1-high platinum-resistant ovarian cancer, as this trial has demonstrated that mirvetuximab delivers clinically meaningful benefit in this setting, with significant and durable responses and a favorable tolerability profile.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And the stock has been acting well over recent days, up something like 8% in that time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Immunogen Inc. (Nasdaq:IMGN) managed to rope in revenues totaling $9.2M in overall sales during the company&#8217;s most recently reported quarterly financial data &#8212; a figure that represents a rate of top line growth of -49.4%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($245.8M against $111.8M).<\/span><\/p>\n<p><b>Other key tickers in the small cap biotech space<\/b><span style=\"font-weight: 400;\"> include INmune Bio Inc. (Nasdaq:INMB), Cassava Sciences Inc. (Nasdaq:SAVA), Intercept Pharmaceuticals Inc. (Nasdaq:ICPT), and iShares Biotechnology ETF (Nasdaq:IBB).<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The small cap biotech space offers a powerful dimension for active investors because it is comprised of stocks with little or no consistent correlation with [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":45307,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[999,15954,12851,15952,16102,15953],"stock_ticker":[],"class_list":["post-45855","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-dvax","tag-icpt","tag-imgn","tag-inmb","tag-otlc","tag-sava","entry"],"acf":[],"yoast_head":"<!-- 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