Although Generex (GNBT.ob) continues to trade with a share price of a dime, the recent news developments continue to give investors a look at the future potential of the company, including the soon-to-be spun off subsidiary Antigen Express (AE).
Since AE-37 was labeled as the center piece of the future earlier this year, it should come as no surprise that the clinical stage immunotherapeutic treatment for cancer - currently being tested to treat breast cancer - is garnering most of the company's recent headlines.
Reports of positive preliminary results for the ongoing trial have not done much to move the GNBT share price, but those announcements - combined with coverage from peer-reviewed publications - might give investors confidence in the success of the upcoming AE spin-off.
In addition to areview in the September 2011 issue of Expert Opinion on Biological Therapy, Generex and Antigen Express added on Wednesday that AE-37 is slated to be featured in the October issue of 'Scientific American' in a story titled "A New Ally Against Cancer."
The run of press coverage is sure to bring new eyes - and potentially new investors - to Generex and Antigen Express, but it continues to look like the short term concerns over financing and a shaky market are dominating the market sentiment a lot more than the positive press coverage is.
It's also possible, however, that speculative investors are not so eager to jump into another cancer immunotherapy treatment right now, so soon after the Dendreon (DNDN) blood bath that ensued when year-end sales guidance for the prostate cancer immunotherapy was pulled.
A recent update stated that the AE spin-off would take place later this year or early next, and that's a key catalyst to keep an eye on. Generex has promised investors a portion of the new company by means of a special share dividend, so an investment in AE-37 does come with some enticing side stories.
With a share price of a dime and a market cap of just thirty million, it might be time to take a look at a speculative investment here again.
While many may question the $300 million valuation placed on AE-37 at its current stages by an unnamed independent valuation firm earlier this year, most Phase II immunotherapeutic cancer treatments do garner a much higher market cap than where GNBT stands right now, so there could be some fuel behind the argument that the stock is undervalued.
Especially if you still consider Oral-lyn a potential game-changer for insulin delivery.
I haven't jumped back in yet, but can't say that the thought hasn't crossed my mind.
Disclosure: No position.
