BioPharmX Corp (NYSEAMERICAN: BPMX) is having an incredibly strong day in the market today, but the company hasn’t released any news. Digging through the various social investing communities, I came across a comment that was being made quite a bit. Essentially, many believe that the company is a takeover target, but is it? Today, we’ll talk about:
- The value of BPMX as a takeover target;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Is BPMX A Takeover Target?
As mentioned above, BioPharmX is having a strong day in the market today on no news. While there’s no real catalyst for the move, the idea that the company is a takeover target seems to be swirling around various social investing platforms and could be part of the cause for excitement. So, what would the company bring to the table if it were to be taken over?
The primary product of value at BPMX is known as BPX-01. The treatment is a proprietary topical minocycline gel formulation that is being developed as an option for the treatment of acne vulgaris. BPX-01 is the company’s first candidate from its anhydrous hydrophilic topical delivery system.
In a recent Phasse 2a clinical study, BPX-01 showed strong data. The treatment demonstrated statistically significant reductions in facial P. acne after four weeks of once-daily treatment. Just as importantly, the data showed that there were no measurable systemic levels of minocycline and no drug-related adverse events.
With this data in mind, BPMX moved forward with a Phase 2b study that also produced promising results. While the treatment failed to show statistical significance in its primary endpoint of inflammatory acne lesion reduction, a clear numerical trend in IGA score for the secondary endpoint of a two-grade improvement to clear or almost clear was seen.
Another important thing to mention here is that the treatment and its relative success in the acne space led to the culmination of BPX-04, another topical minocycline gel formulation. This time, the treatment is being developed as an option for rosacea. While still early in development, preliminary data from an ongoing study suggest that the drug comes with promising efficacy and good tolerability.
Considering this, and the fact that the market cap is relatively low, just over $30 million, BioPharmX could indeed become a takeover target. After all, the acne market is a massive one, generating sales of $4.9 billion per year. The rosacea market, while not as big, generates about half a billion in revenue per year. If the company’s minocycline gel formulations prove to be effective, they could take a good percentage of these markets, which would threaten some big players. So, while I don’t see a takeover happening today or tomorrow, in the future, it wouldn’t be off of the table.
What We’re Seeing From The Stock
While no news has been released, takeover chatter in the social space seems to be leading to a strong run in the value of BioPharmX. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:08), BPMX is trading at $0.15 per share after a gain of $0.016 per share or 11.20% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on BPMX. In particular, we’re interested in following the story surrounding the company’s continued work to develop BPX-01 and BPX-04 as the treatments do have strong potential. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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