PhaseRx Inc (NASDAQ:PZRX) Still Has Plenty Of Potential

Today, we are going to talk about PhaseRx Inc (NASDAQ:PZRX), the biopharmaceutical company.It has delivered a large amount of news, which are intended to create a turnaround in the share price.A restructuring process has commenced and the company is looking for strategic alternatives, which means that another company could buy PZRX. Additionally, the company is holding conversations with NASDAQ to maintain its listing.Furthermore, PZRX continues to own a considerable amount of cash on the balance sheet and has a positive net asset per share. We appreciate it and the market will need to recognize it as well.There is a lot to assess.But, before we explain everything, form your own opinion about the stock. Have a look at the following stock chart: 2 month chart for PZRXWe are revisiting rapidly the business model for those who don't know about this company. PZRX was formed in 2006 and is based in Seattle. It is focused on the the R&D of "treatments of inherited enzyme deficiencies in the liver with the help of intracellular enzyme replacement therapy, or i-ERT."Recent DevelopmentsOn October 26, 2017, the market received a press release, wherein PZRX noted that the NASDAQ was going to delist the company's shares. In addition, it was highlighted that PhaseRx is appealing the decision to the Nasdaq Hearing Panel.Our readers will remember well that the company did not comply with the minimum stockholders' equity requirement under Nasdaq Listing Rule 5550(b)(1) for continued listing on the Nasdaq Capital Market. Thus, the company submitted a plan of compliance to the exchange, which has not been accepted.Anything can happen. Thus, we encourage readers to follow closely the next moves of the company as well as the news from the company. A lot of share price volatility may appear in the next months as a result of maintaining its listing.On October 17, 2017, the company released its intention to preserve its cash resources. Additionally, it remarked again that restructuring efforts are being made. On top of it, PZRX provided information about its review of strategic alternatives that include a potential merger transaction. Read the following text that the press release contained:

"No timetable has been set or shared for this process yet. Also, as of now, the Company has not decided whether it will engage in a transaction or multiple transactions." Source

Additionally, it noted again the Orphan Drug Designation Status received by the drug candidate PRX-ASL. For those who do not know, the US Food and Drug Administration gives this distinction "granting special status to a drug or biological product (“drug”) to treat a rare disease or condition upon request of a sponsor."We believe that if the company is holding conversations with another company, this designation will help PZRX obtain a better price for its stock.On November 9, 2017, the next quarterly results were released for the third quarter ended September 30, 2017. The most significant was the following.The total operating expenses were $2.5 million for this quarter as compared to $3.1 million in the same quarter in 2016. We appreciate the news due to a decrease in general and administrative costs. As said before, the restructuring is helping the company reduce costs and enhance shareholder value.Financials and Market ParticipantsWe continue to see that the financial situation is still sound. Have a look at the following statistics:

• Total Cash Per Share: $0.71
• Total Debt: $5.89 million
• Book Value Per Share: $0.19

Additionally, market participants still hold large stakes in the company:Vanguard Group, Inc. (The)142,182Jun 29, 20171.22%133,651Regions Financial Corporation63,845Sep 29, 20170.55%54,906Virtu KCG Holdings LLC61,326Jun 29, 20170.52%57,646Citadel Advisors LLC19,512Sep 29, 20170.17%16,780Deutsche Bank Aktiengesellschaft900Jun 29, 20170.01%845SourceFinally, almost 11% of the total outstanding shares are owned by insiders in the firm. We are not seeing these directors selling any shares, which we appreciate. In our opinion, it means that they believe in the future of the company.ConclusionCurrently trading with a market cap of $7 million, we believe that there may be some catalysts upcoming that will make the share price increase quite a bit soon.Additionally, the total amount of shares is 11 million and the float is only 5 million. Hence, a lot of share price volatility can be expected. The market participants seeking volatility plays should add this name to their list.To sum up, PZRX continues to be a interesting name and we still see potential for share price appreciation, regardless of the outcome with NASDAQ.Be sure to check out our coverage on PZRX!We will be updating our subscribers as soon as we know more. For the latest updates on PZRX, sign up below!Image courtesy of Jakob Breivik Grimstveit via FlickrDisclosure: We have no position in PZRX and have not been compensated for this article.