Most investors understand the importance of cancer research, not only for humanitarian reasons, but because an effective treatment for cancer could revolutionize the market. For this reason, Lixte Biotechnology Holdings, Inc. (NASDAQ: LIXT) stock may be one to watch as it continues developing its flagship cancer treatment LB-100. LIXT stock has caught some investors’ attention thanks to its short squeeze potential and low float of only 5.11 million shares which means shareholders could see another run up similar to its recent 228% run.
LIXT Stock News
LIXT stock caught investors’ attention on April 11th when the company released the pre-clinical results of its LB-100 study in collaboration with the Netherlands Cancer Institute. Presenting this new data at the largest cancer research organization in the world, LIXT’s collaborator – Professor Bernards – highlighted how LB-100 induces an effect on a number of KRAS-mutant cancers which makes them more vulnerable to anti-cancer therapy.
This news triggered a 228% run for the low float stock which IPO’ed on the NASDAQ in November 2020 after uplisting from the OTCQB Venture market. The company was founded in 2005 by its President and CEO John S. Kovach, MD, who directed leading Comprehensive Cancer Centers at Mayo Clinic, Rochester, Minnesota as well as the City of Hope National Medical Center in LA.
Since its IPO, LIXT has been developing its lead compound LB-100 to act as a cancer treatment when used alone or in combination with traditional anti-cancer therapies. As LIXT highlighted, “Most cancer research over the past 30 years has focused on the “on” switches because the “off” switches, especially the master “off” switch proteinphosphatase (PP2A), were believed to cause intolerable toxicity in patients.”
What sets Lixte apart from other clinical-stage pharmaceutical companies is its breakthrough first-in-class lead compound, PP2A inhibitor LB-100. Contrary to past opinion, this lead compound is proven to be readily tolerated in cancer patients at its given doses and its promising results could make LIXT stock a promising long-term hold.
This is because there are no known competitors for this treatment even after over 40 preclinical studies with leading medical centers have indicated that LB-100 enhances standard therapies for many cancers.
Currently in its Phase 2 trials for testing LB-100 on small cell lung cancer, soft tissue sarcomas, and myelodysplastic syndrome, if LB-100 is approved for treatment of these conditions as well as Gliomas, then the total market for the treatment’s clinical targets could exceed $5 billion. Given the company’s focus on cancers vulnerable to PP2A, if LB-100 enhances the treatments of these aggressive cancers, it would be a major achievement in improving chemotherapy.
Due to LB-100’s potential to treat cancers that are particularly difficult to operate on such as Glioblastoma Multiforme (GBM) – the most aggressive type of cancer that begins within the brain – the National Cancer Institute began studying LB-100’s ability to penetrate brain tumors. The estimated completion date for this pharmacological study is August 2023 which could yield some significant findings for the company and LIXT stock.
While LB-100 was shown to enhance the effectiveness of radiation, temozolomide chemotherapy treatments, and immunotherapy in animal models of GBM, LB-100’s ability to penetrate tumor tissue in the brain is unknown. If it’s proven effective, then its treatment could be revolutionary in the treatment of inoperable brain tumors.
In the future, LIXT hopes to conduct additional clinical trials exploring LB-100’s effectiveness in combination with PD-1 inhibitors to see if it is able to improve the inhibitor’s effects. It is also interested in confirming whether LB-100 enhances the effectiveness of radiation therapy without enhancing toxicity which could be a life changing improvement for patients undergoing chemotherapy since it would reduce the number or dose for radiation treatments.
LIXT also has another treatment in its pipeline – LB-200 – which has the potential to be used in the prevention and treatment of neurodegenerative diseases including chronic hereditary diseases such as Gaucher’s disease and cancer. Although it has the potential to be the most effective in its class, LIXT has chosen not to pursue pre-clinical development until it finishes LB-100.
LIXT Stock Financials
In terms of its financials, LIXT appears to be in a strong financial position after reporting $5 million in total assets and $302 thousand in total liabilities. In this way, the company is able to cover its liabilities without risking its liquidity. In terms of operating expenses, LIXT more than doubled its costs from 2020 – reporting $6.7 million. This increase was mainly the result of $2.9 million paid out as compensation to related parties as well as increasing R&D costs. As is the case with other pharma companies, LIXT operated at a $6.7 million net loss since it has no revenue streams.
As its LB-100 trials require significant funding, LIXT issued 2.9 million shares in a direct offering with institutional and accredited investors at $2 per share – raising a total of $5.8 million.
LIXT Stock Short Interest
LIXT stock was recently highlighted for its short squeeze potential after an 11,000% increase in its raw short interest. Currently, short interest is at 35.31% while the off-exchange short volume ratio its 38.32%. It also has a cost to borrow of 94.68% and 1.02 days to cover.
It’s not surprising to see short interest increasing on the clinical-stage pharmaceutical company but considering its recent run up on positive news, the stock could catch shorts by surprise – especially if this stock catches on Reddit.
Media Sentiment
@BoredBilionaire believes LIXT stock could be good for a short squeeze
@dbr_land believes that with paytience – LIXT stock will pay
Technical Analysis
LIXT stock is currently trading at $1.25 following a 22% spike over the last three days. Despite its recent publicity, the stock could be dipping back to its support at 1.15. However it recently surpassed its resistances at 2.01 and 2.62 during its run up to $3.62 which means it could have a repeat run with a strong catalyst.
Accumulation has taken a hit with each spike as bagholders left their positions and the MACD is currently bullish. The RSI is quickly dropping from overbuying to 62. LIXT stock has an OS of 16.65 million with 5.11 million. Despite its recent high volume, the volume has sunk to 559 thousand today compared to its average of 3.5 million.
LIXT Stock Forecast
Although there is currently low volume for LIXT stock, it could see a turnaround if momentum returns. Considering its low float and proclivity for moving on news, the stock could have another run up in its near future. However, its important to note that pharmaceutical stocks like LIXT move on binary events such as positive trial results and FDA approval. But if LIXT’s LB-100 treatment is approved, shareholders could see a significant return on their investment due to the prevalence of cancer and the treatment’s potential to supplement other treatments.
If you have questions about LIXT stock and where it could be heading next feel free to reach out to us in our free alerts room!
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