TheStreetSweeper issues an alert for investors considering Genprex (GNPX)!
After going public in late March at $5 per share, the stock has shot up by an ominous 190+%.
But the market has missed the risks inherent in this 4-person, pre-revenue biotech linked to a spectacular biotech bust, Introgen Therapeutics.
Whether Genprex will follow Introgen’s pathway is anyone’s guess. The company has already lost $17.5 million in getting its experimental therapy for non-small cell lung cancer (NSCLC), Oncoprex, to Phase I/II trials.
It may well be years, if ever, before it reaches Phase III. Even under the best of conditions, the next steps are expensive and extensive, as demonstrated by Novartis. Its NSCLC drug, Zykadia, finally got FDA approval three long years after receiving accelerated approval.
If Genprex happened to become one of the 15% that receives FDA approval and commercializes, it would face other multi-billion-dollar giants with approved NSCLC therapies such as Pfizer and AstraZeneca. Indeed, if Genprex ever gets to market, newer technologies may be waiting, too.
Any advancement by Genprex will likely require many, many years of destroying shareholder value through dilution.