Roth Affirms Rexahn (RNN) at 'Buy'; Things Shaping Up for Solid Second-Half 2014

Roth Capital maintains Rexahn Pharmaceuticals (AMEX: RNN) at Buy with a target price of $3. Ahead of the bell, Rexahn reported Q1 EPS of ($0.09), $0.07 worse than the analyst estimate of ($0.02).

Analyst Joseph Pantginis commented, The financial results currently do not impact our investment case. Rexahn has three clinical-stage assets. Archexin is a potentially best-in-class Akt1 inhibitor. A Phase IIa study of the drug in pancreatic cancer showed that the drug is safe and well tolerated and demonstrated preliminary signs of efficacy. Archexin is in an ongoing Phase IIa study in metastatic renal cell carcinoma (mRCC). The safety component for this study should be completed in 4Q14. RX-3117 is a DNA synthesis inhibitor (nucleoside analog) which has successfully completed an exploratory Phase I study in solid tumors and is in a Phase Ib study in patients with solid tumors. Rexahn's goal is to deliver a corporate partnership for this product mid-2014. Enrollment in the Phase I study should be complete in 4Q14/1Q/15. Supinoxin (RX-5902) is a p68 RNA helicase inhibitor that is currently in an ongoing Phase I trial in solid tumors. The trial is now in the fourth dosing cycle (150 mg) and no MTD has been determined yet. Study completion and release of clinical data are expected in 4Q14. Over the long term, we believe that Rexahn can drive value from its nano-polymer-drug conjugate system (NPDCS). Two lead candidates from this platform are 1) RX-21101 which is a polymer conjugated form of docetaxel and 2) RX-0201 which is a nanoliposomal Akt-1 inhibitor, which is similar to Archexin.

Bottom line: We believe a compelling valuation for the stock is being driven by the required pieces now in place for this refocused and retooled story. With a sole focus on oncology, we believe the Rexahn story can now be viewed as a ground floor opportunity with important upcoming news flow later this year.

For an analyst ratings summary and ratings history on Rexahn Pharmaceuticals Inc. click here. For more ratings news on Rexahn Pharmaceuticals Inc. click here.

Rexahn Pharmaceuticals Inc. closed at $0.86 yesterday.

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