The last time we covered Bio-Path Holdings Inc (NASDAQ:BPTH), we said that the stock was cheap ahead of a major catalyst. The company just delivered that catalyst in the form of a clinical update to the previously reported interim analysis from the Phase 2 trial of prexigebersen (BP1001) for the treatment of acute myeloid leukemia (AML) and provides its plans for the compound’s clinical development moving forward toward registration. As a result, BPTH jumped from $2.60 to $73.52 for gains of 2700% in just a matter of days. BPTH is now among the most talked about names among small caps and day traders and speculators are asking where the stock goes next.
First up, a little background for those that are not familiar with BPTH. Bio-Path is a biotechnology company developing DNAbilize®, a novel technology that has yielded a pipeline of RNAi nanoparticle drugs that can be administered with a simple intravenous transfusion. Bio-Path’s lead product candidate, prexigebersen (BP1001, targeting the Grb2 protein), is in a Phase 2 study for blood cancers and in preclinical studies for solid tumors. This is followed by BP1002, targeting the Bcl-2 protein, which the company anticipates entering into clinical studies where it will be evaluated in lymphoma and solid tumors.
Latest Clinical Update
The open-label Phase 2 study in Stage 1 evaluated the efficacy and safety of prexigebersen in conjunction with low dose cytarabine (LDAC), a therapeutic regimen well-established in treatment of AML patients who cannot or elect not to be treated with more intensive chemotherapy. The primary objective of the study is to determine whether the combination of prexigebersen and LDAC provides greater efficacy than would be expected with LDAC alone in a de novo patient population. Subsequently, Stage 2 of the study added a second cohort that is evaluating the efficacy and safety of prexigebersen in conjunction with Decitabine in addition to the cohort evaluating prexigebersen in conjunction with LDAC.
After treating nearly 70 patients, Bio-Path believes it now has a plan with definable paths to registration. Results to date have shown prexigebersen, with its efficacy and safety profile, to be an ideal combination candidate with frontline therapy. The Principal Investigators of the Phase 2 study and Bio-Path’s Scientific Advisory Board helped prepare the revised clinical program for prexigebersen in AML.
Bearish bets against the stock have also jumped recently, with short interest accounting for 15 percent of the shares available for trading. That’s up from less than 1 percent in January, according to financial analytics firm S3 Partners. The next catalysts for Bio-Path include fourth-quarter results expected sometime in the next month.
Currently trading with a market cap of $36 million, BPTH is one of the most exciting small caps trading on the NASDAQ right now. Considering the large number of shorts in the stock and day traders trading it, BPTH represents one of the best opportunities for trading this week. BPTH is a pure momentum play and we urge traders to trade accordingly. We will be watching closely.
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Disclosure: We have no position in BPTH and have not been compensated for this article.
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