Algernon Succeeds by Failing
A friend of mine introduced me to an interesting company a week ago. It sounded good so I bought a few shares. On Saturday the 15th of January I spent ninety minutes on Zoom with the CEO. What a story that was.
Algernon Pharmaceuticals takes existing drugs with some history behind them and they test those drugs in other applications. Since it doesn’t make any sense to spend years and millions of dollars developing and testing a drug only to have it lose patent protection soon after, Algernon picks drugs that have been tested and approved outside of Europe and the US but have no generic equals in the US.
By pretty much bypassing the Phase 1 portion of the trials, Algernon saves years and millions but that isn’t the most brilliant part of what the company just did.
For most of the past two years the company has been working on a treatment for Covid using a drug called ifenprodil. The drug seemed to work and excited investors ran the shares up to a $60 million market cap in February. But it didn’t work well enough and AGN dropped the trial by July. Meanwhile the shares dropped by 90% from February of 2021 to December.
Management bit the bullet and rather than deal with a $.04 stock that no one wanted, in November announced a 100 for 1 stock rollback. Typically investors and companies hate doing rollbacks but there are times they can be a very smart thing to do. Since the company knew that pissed off investors were going to unload shares into the Tax Loss Silly Season, management figured that they might as well do a serious rollback that would get the number of shares down to a reasonable amount and to get the stock price above $5.
If you are going to try to get stockbrokers in the US to recommend a stock, the shares have to be higher than $5 a share. Since it really doesn’t matter how many slices you do in a pizza, the pizza stays the same size, I don’t understand why Canadian companies put up with shares selling for pennies. If they want to get on a serious exchange and attract American investors, the stock price has to be above $5.
In any case, the rollback presented brave investors with an incredible opportunity. In late November the post rollback shares were selling for a low of $3.25 and began January of 2022 at $4.10. On January 17th following a piece in Streetwise Reports, the shares traded at $10 a share after a 150% gain in about two weeks.
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At $3.25 the share price was an absolute steal. Australia has a rebate of 40% for the cost of drug trials done in Australia. In October the company received a $2 million check as a rebate on clinical work performed in the country. As of the end of October the company had $3.5 million on hand but still has about $1.50 per share in cash.
The failure to not succeed with the Covid drug is one of those good news stories. Fauci and the CDC knew in April of 2020 that both HCQ and Ivermectin could stop Covid. Fauci and the entire NIH/CDC are sock puppets owned and operated by Big Pharma. They weren’t about to let any pill get in the way of the immense profits generated by the sales of billions of “vaccine” shots. Shots that don’t work by the way.
Omicron will have killed the need for a pill to cure Covid. Like all viruses, Covid mutates and that is why I said eighteen months ago that they would never have a successful “vaccine.” Now we know the “vaccines” don’t work and it doesn’t matter with Omicron because the sickness is little more than a flu and everyone is going to catch it. That means the Plandemic is over and now we need to figure out how to fix all the immune damage being done by the “vaccines.”
Interestingly enough AGN had a couple of Plan Bs in the works. The one that I spent an hour learning about on Saturday was the use of DMT to help cure strokes. DMT is of course known as a hallucinogenic drug but studies done in Europe seem to show a significant effect on strokes.
Treatment for strokes is pretty primitive. Strokes are problems with blood flow in a blood vessel to the brain. 13% are hemorrhagic where the blood vessel leaks or breaks. 87% are caused by blood clots. Before any treatment can be made it is necessary to determine which type of stroke has taken place.
DMT might be a better treatment for stokes than the typical aspirin or blood thinners that are dangerous in their own right. Blood can get too thin and when it does, bleeding can take place in the stomach and cause other problems. A drug called TPA for Tissue Plasminogen Activator can be administered in the first three hours after a stroke takes place but given the length of time to get to a hospital and have a CAT scan completed and diagnosed only 5% of patients get TPA. After that time, the best medicine can do today is to thin the blood.
As a result 85% of stroke patients have some sort of long-term disability. It is estimated that by 2027 the market for a drug for stokes would be a $15 billion market. Studies already done in animals show success in treating strokes with an increase in Neutron Growth.
Algernon is planning a Phase 1 trial in the UK beginning in this quarter. The hope is to be able to move onto a Phase II trial by the 4th quarter of 2022.
Algernon is still working on coming up with some malady that ifenprodil would be an effective treatment for. Chronic cough and idiopathic pulmonary fibrosis, or IPF are serious diseases that the drug may be effective in treating. The drug has been tested and approved for use in both France and in Japan for other applications so the company anticipates advancing to Phase II data in Q2 of 2022.
I suspect Algernon offers a lot of profit potential in the near future. The stock has run up 150% in two weeks and a pullback would be perfectly normal but there are only 1.6 million shares outstanding and over $2 million in the bank. At a $10 price you have a $16 million market cap. That seems very cheap to me.
By biting the bullet the company has gotten the price of shares up to a level where stockbrokers in the US can recommend. In my view the company has a lot of potential and I placed my bet with shares bought in the open market.
Algernon is going to be an advertiser. They have a lot of good things in the works and there should be a constant flow of news. It’s the kind of company that could be a $500 million market cap in a takeout after success in any one of several drug trials. Do your own due diligence.