Novartis Puts Opexa On The Map (OPXA, NVS)
Opexa Therapeutics, Inc. (NASDAQ: OPXA) has just done more than gotten itself on the map. It now is on the map and everyone wants to take a trip there. Shares are up exponentially based upon a deal that could ultimately give it ten-times yesterday’s value.
The company’s market cap was around $6 million yesterday, yet Novartis (NYSE: NVS) is acquiring the company’s stem cell technology. The gains from this are astronomical. Opexa was up 377% at $2.25 on over 5 million shares of stock mid-day. This micro-cap stock trades close to 60,000 shares on most days and it only crossed over 100,000 shares in nine trading sessions over the last 3 month period.
Novartis is paying $3 million to Opexa up front, and it is paying out another $1 million over six months.
But the milestones and royalties are where the real kicker is. Upon the successful development and marketing of the stem cell technology, Opexa could collect commercial milestone payments which might ultimately be worth more than $50 million.
As far as what is left now, the CEO of Opexa said that the deal will also allow Opexa to focus its attention its key clinical asset called Tovaxin as an anti-T-cell therapeutic vaccine which could be used in cancer treatments.
This looks like just one more exception to the unofficial investor rule that penny stocks never really work out.
JON C. OGG
AUGUST 7, 2009
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