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Tuesday, August 18, 2015

NephroGenex Pyridorin Could Be A Blockbuster Drug For Diabetic Nephropathy

By Jason Napodano, CFA

NephroGenex (NASDAQ:NRX) is developing pyridorin for the treatment of Diabetic Nephropathy (DN), a chronic debilitating condition that develops in patients with a combination of diabetes and Chronic Kidney Disease (CKD). The company is currently conducting a Phase 3 trial with pyridorin with top-line data expected around the middle of 2016. The Phase 3 trials are being run under a special protocol assessment (SPA) with the FDA. The drug has also been granted Fast Track development status. Previously reported Phase 2 data showed a 57% treatment effect and the hurdle for success in the current Phase 3 trial is only 28% treatment effect.

For the purpose of this article, I delve into the NephroGenex story and outline why I believe the shares are vastly undervalued given the existing data and potential market opportunity for pyridorin in DN. I start with a brief overview of both DN and CKD, and then discuss pyridorin, the data generated to date, the current Phase 3 study, the market opportunity, and conclude with valuation of the stock. My target is $16 per share in the next 12-18 months.

Please read the article on Seeking-Alpha: LINK

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