HCW starts RXi Pharma at buy; PT $3

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H.C. Wainwright launched coverage of RXi Pharmaceuticals (NASDAQ:RXII) with a “buy” rating and price target of $3. The stock closed at $1.97 on July 6.

RXi is focused on improving the efficiency and anti-tumor activity of cell-based immunotherapy, principally via adoptive cell transfer, using RNA interference (RNAi). 

Analyst Raghuram Selvaraju writes that RXi possesses a proprietary technology platform of self-delivering RNAi, which has demonstrated clinical safety in various topical formulations. The company is using its technology in an ex vivo setting so as to enhance the activity of immune cells being used to treat cancer. 

Cell-based immunotherapy is one of the core pillars of the so-called immuno-oncology field, which co-opts the immune system to fight the patient's cancer by arming and activating immune cells to infiltrate tumors and kill cancer cells, he added. 

RXi recently entered into an early-stage R&D collaboration with Iovance Biotherapeutics (NASDAQ:IOVA), a leader in the field of adoptive cell transfer, Mr. Selvaraju said. 

In addition, RXi has two clinical-stage programs that it currently intends to out-license, partner or sell. “In our view, RXi could monetize these programs through licensing or sale transactions to raise non-dilutive capital and provide long-term upside via royalties and milestones in the coming months,” he added.

Stephen Kilmer