|This Bottom Bouncer Looks Primed To Pick Up More Traction|
This low float biotech stock which has several catalysts on tap appears ready to head higher after a very recent trend reversal.
We haven't covered TapImmune, Inc.(OTCQB: TPIV) since it first caught our eye when it was trading as a pure penny play, but the firm has now developed a strong pipeline and it catches our attention as an undervalued reversal play.
After attending some recent biotech conferences, we are hearing some very positive buzz about TapImmune, Inc.-- still a relatively small cap biotech company which is specializing in the development of innovative immunotherapeutic vaccines in a couple of billion dollar areas in oncology and infectious disease. SeeThru Equity recently called for a $7 price target for this stock, which currently only trades with a $31M market cap. The Seattle Washington based firm has a strong pipeline and numerous milestone announcements expected, but perhaps most interstingly, they've been able to bring a couple of new T cell stimulation peptide based vaccines for the treatment of cancer without spending too much money. In addition, they recently eliminated most of their debt by doing a re-structuring as part of what management calls "a very successful cleanup effort."
The company’s lead pipeline candidate, TPIV100, represents a potentially significant advancement from current therapies. In fact, TPIV's vaccines address a significant unmet market need. They are applicable to a much larger and broader patient population than current ‘standard of care’ therapies like Herceptin by Roche which is useful for only 15-20% of the Her2neu Breast Cancer patient population. Herceptin is not designed to kill tumor cells (it slows tumor growth). 2013 Herceptin sales exceeded $6 Billion. TPIV vaccine is applicable to over 50% of the Her2neu patient population AND is also not limited to breast cancer. Her2neu is a target for TPIV in both Colorectal and Ovarian cancer where there are very few therapeutic options.
As pointed out in the recent analysis of the company, unlike other vaccine technologies that narrowly address the initiation of animmune response, TapImmune's ("Prime" and "Boost") approach utilizes aproprietary set of peptide antigens to broadly stimulate the cellular immunesystem. TapImmune’s platform technologies restore protein expressionwithin cancerous cells, making them immunogenic and providing a signal tothe immune system to attack the cancer. This unique approach will allowTapImmune to treat wider patient populations than currently utilizedtherapies, treat patients across multiple indications and treat multipletherapeutic areas. TapImmune is also exploiting the emerging field ofvaccinomics for the development of vaccines applicable to a broad patientpopulation. Vaccines have been a significant driver of value forpharmaceutical companies in recent years, and cancer vaccines inparticular are at the forefront of a new wave of cancer treatments.TapImmune believes it has the most comprehensive T-Cellimmunotherapeutic vaccines in development, which have the potential tocapitalize on these attractive industry dynamics.
Beautiful Bottom Bounce Play Chart:
We like the technical analysis chart here too, but particularly if the stock manages to break the $2 mark in the next session or so. If it manages to, then we could see a run to $2.50 where it should meet additional resistance, then $3 if it breaks past that mark. Because there are not that many shares in the float, you'll notice that the stock has ran as high as $7.00 on positive Phase I data news.
One of the key goals driving the company is a move on to the NASDAQ exchange. "I think it helps us in many ways, including the prestige and the type of investor pool we will have access to." said Glynn Wilson, CEO of TapImmune.
Disclosure: Long TPIV since 2012