An updated Zacks SCR report on Resverlogix by John Vandermosten entitled: "Renal Program Advancing; Financing Options Clarified" was posted on 12/16/16.
"Based on our DCF model and a 15% discount rate, RVX is valued at approximately CAD$5.00 per share. Our model applies a 64% probability of apabetalone sales for indications in the BETonMACE trial. Our valuation only includes BETonMACE indication contributions from the US, Europe, & Latin America, as well as royalties from the Hepalink arrangement. It does not recognize potential from renal or other orphan indications.
Resverlogix Corp. (RVX.TO) began recruiting and dosing participants in the Phase 3 BETonMACE trial of its lead candidate apabetalone (RVX- 208) in high-risk CVD patients with diabetes in November 2015. We believe the trial will take approximately 3 years to complete, targeting topline readout in 2018. With a potential impact on multiple markers for CVD we are optimistic on a materially significant impact on MACE. The company announced successful PK study results for its Phase 1 renal trial and may commence Phase 2 studies in 1H:17.
At the current price, we view Resverlogix shares as undervalued, and in a position to provide long-term upside potential. We maintain our target price of CAD$5.00 per share and believe that expansion into new geographies, the orphan disease program, and renal disease, could provide further upside to our valuation."
