The largest Algernon Pharmaceuticals (CSE: AGN) shareholder who nearly doubled their AGN stake this week to more than 13% of the company AlphaNorth Asset Management won 1st place for ‘Best 5-Year Annualized Return’ at the 2021 Canadian Hedge Fund Awards with annualized returns of 40.3% over the prior 5-year period. When Canada's most successful hedge fund nearly doubles their stake in a company that needs to increase 5.907X higher in share price just to return to its market cap from back on December 14, 2020, of $68 million it is very meaningful and significant!
Explaining their large AGN investment the CEO of AlphaNorth Asset Management said, "We believe the weakness in the recent share price has provided a great opportunity to increase our position in Algernon. Our increased investment confirms our support for the drug pipeline they are developing as well as our strong belief in management. Algernon’s recent topline data from its Ifenprodil IPF and chronic cough study was very impressive, and we are excited about its potential in a Phase 2b human trial. They are also working to move forward with their planned Phase 1 study of DMT for stroke which is a major global medical issue urgently in need of new drug treatment options."
NIA has only had time to discuss AGN's upcoming Phase 1 study of DMT for stroke, which is what we are most excited about, but... AGN's most advanced drug Ifenprodil for Idiopathic Pulmonary Fibrosis and chronic cough will have its full Phase 2a study data set released in the upcoming days.
We already know from the recently released topline data that geometric mean 24-hour cough counts were reduced by 32.0% at 4 weeks (p = 0.023) and 39.5% at 12 weeks (p = 0.001) compared to baseline and the geometric mean awake cough counts were reduced by 30.2% at 4 weeks (p = 0.038) and 37.4% at 12 weeks (p = 0.002) compared to baseline! Some of the trial participants have been asking AGN for access to Ifenprodil for their personal use because nothing else helps their Idiopathic Pulmonary Fibrosis and chronic cough!
Biotech stocks aren't normally listed on the Canadian Securities Exchange, and this is the primary reason that AGN is so undiscovered/undervalued. Most of the largest biotechnology focused funds can't invest into AGN on the CSE. Canada's #1 most successful hedge fund AlphaNorth Asset Management recognizes this as a huge opportunity to capitalize because AGN has already applied for its NASDAQ listing, which is where most biotech stocks trade and where AGN hopes to achieve the market cap and increased liquidity it deserves!
One other publicly traded company has a drug in Phase 2 trials for Idiopathic Pulmonary Fibrosis and chronic cough called Trevi Therapeutics, Inc. (TRVI) and it has increased by 365.82% year-to-date in 2022 because it is listed on the NASDAQ!
Prior to TRVI releasing the Phase 2 study data for its IPF/chronic cough drug on February 24th, TRVI was trading for $0.46 per share. Within one week of the data being released, TRVI rallied by 245.65% to a March 2nd high of $1.59 per share. Today, TRVI is trading for $3.68 per share with a market cap of US$157.4 million!
TRVI's market cap is nearly 18X higher than AGN! TRVI doesn't have any DMT drug for stroke!
Idiopathic Pulmonary Fibrosis (IPF) is a serious, end of life disease where cough is one of the most significant symptoms. There are estimated to be 130,000 IPF patients in the US and more than 1 million patients ex-US, where up to 85% of these patients experience chronic cough. There are no approved therapies for the treatment of chronic cough in IPF. Patients with chronic cough in IPF can cough up to 520 times per day, leading to increased feelings of anxiety as it induces breathlessness. Coughing spells/episodes lead to significant fatigue, air hunger, peripheral oxygen desaturation and some patients also experience cough-related urinary incontinence. The social impact of chronic cough in IPF further compounds limited exercise ability, reduced walking distance and the need to use supplemental oxygen.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has received compensation from AGN of US$100,000 cash for a twelve-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.