NurExone Biologic Inc. (TSXV: NRX), (OTCQB: NRXBF), (Germany: J90) (the “Company” or “NurExone”), a biopharmaceutical company developing exosome-based therapies for the multi-billion-dollar regenerative medicine market.
Among its many therapies and development work, NRX announced the potential of ExoPTEN to repair optic nerves. The tests were in collaboration with the Goldschleger Eye Institute at Sheba Medical Center, consistently ranked one of the top ten hospitals in the world. For those patients with Glaucoma, which is the leading cause of permanent blindness. (GC Report. DEC 24)
Investment Risks (It is always good to have some context)
• Limited operating history
• In the pre-revenue stage • No guarantee that any of its drugs/therapies will be commercialized
• Potential for delays in clinical trials; unfavourable results
• Will need to pursue equity financings, implying potential for share dilution
With that said, Analysts have the shares at a fair value of north of $2.50. With the following stats, NXR seems a potential takeover candidate when you factor in the stats below
Current management has concluded a couple of rounds of financing and exercises, which raised cash to 2.5 million, 5 times the previous year.
Working Capital 2.3 million vs 74k.
Assets 3.6 million vs 2.1 million.
EXOSOME? WHAT?
Exosomes are nano-sized, membrane-bound vesicles (sacs) secreted by cells, and abundantly present in various body fluids, including blood, urine, saliva, semen, vaginal fluid, and breast milk. They play a pivotal role in intercellular communication, facilitating the transfer of vital biological molecules, such as DNA, RNA, and proteins, between cells. Various sources suggest that exosomes possess significant therapeutic potential to serve as an effective, targeted drug delivery system. Exosomes’ natural ability to target inflamed or damaged tissues and their capacity to carry and deliver active pharmaceutical ingredients (APIs) make them a promising platform for targeted drug delivery and regenerative medicine. In recent years, the exosome therapeutics and diagnostics industry has experienced significant growth, with over 50 companies actively engaged in R&D (research Report Dec 11).
I’m not going to lie; this is complicated stuff. So are rockets, but we are more interested in the successful flight than the technology. Biotech like this would continue to live under a rock without a vision. Want to see the stats for the Spinal Cord Injury Paralysis Centre? I knew that you would.
The annual incidence of spinal cord injury (SCI) is approximately 54 cases per one million people in the United States, or about 18,000 new SCI cases each year.
- The estimated number of people with SCI living in the United States is approximately 302,000 persons, with a range from 255,000 to 383,000 persons.
- The average age at injury has increased from 29 years during the 1970s to 43 since 2015.
- About 79% of new SCI cases are male.
- SCIs occur disproportionally in African Americans, who represent about 25% of injuries.
- Vehicle crashes are the most recent leading cause of injury, closely followed by falls. Acts of violence (primarily gunshot wounds) and sports/recreation activities are also common causes.
NRX is a proxy and a solid part of the multi-multi regeneration market for just about every part of the body. Example: The Optic Nerve Disorders treatment market is expected to grow from 5.54 (USD Billion) in 2023 to 11.5 (USD Billion) by 2032, at a compound annual growth rate (CAGR) of ~8.46% during the forecast period.
Part of the rationale for this regenerative research is driven by situations such as Reeve’s and the late Terry Fox. Over and above their bravery, it helps open the door to a possible cure or therapy. As one who suffers from Osteoarthritis, which is currently incurable, regenerative medical techniques such as those of NRX mean I may not end up in a wheelchair permanently. We’ll talk about the AI component next time. Can’t show ALL my cards.
I would buy the stock and put it away (I have). Doesn’t appear as a trader, just a stock that could profoundly change regenerative and by extension, therapies in general. Should be a good enough reason, n’est-ce pas?
Bob Beaty
For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s Thestreet.com, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.
Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)
Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;
‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.
Let’s go.
