Expert Investor Rates Algernon Pharmaceuticals as an Immediate Buy

Expert Chris Temple gives his view on Algernon Pharmaceuticals stock in light of its positive results for its Phase 2a Study for the treatment of idiopathic pulmonary fibrosis and chronic cough.

Aside from gold and silver stocks (which, as a group, are selling today at $1,700 gold at levels they were at several years ago with gold nearer $1,200 an ounce!) I don’t think there’s been any sector sold off over the last 12-18 months in a similarly wholesale fashion as much as biotech stocks, especially the more speculative ones.

That has opened up a lot of opportunities, including in today’s new speculative recommendation Algernon Pharmaceuticals Inc. (AGN:CSE; AGNPF:OTCQB; AGN0:XFRA): Yesterday’s close — CA$5.39/share, or US$4.10/share.

I have followed Algernon intermittently for quite some time; very intrigued by the story and thesis but — at least in this example — wary about catching a falling knife.
But it appears that the knife has finally hit the floor recently, and news out this morning has helped Algernon take a big step toward fulfilling its mission.

Vancouver, B.C.-based Algernon (Go here to learn more about the company for the moment; I’ll have more color in the near future) is a clinical-stage drug development company seeking to further several drugs that were long ago approved.

What Algernon is doing is attempting to “repurpose” drugs that have been approved by various bodies in the past for one (or more) applications/maladies, but where it’s been found that they could also be beneficial for others.

As I’ll be explaining in a follow-up, there are three main drug candidates right now, all of which are likely to be in Phase 2 trials in 2023.

This morning’s news was of positive results from the full data set of its Phase 2a Study evaluating NP-120 (“Ifenprodil”) for the potential treatment of idiopathic pulmonary fibrosis (“IPF”) and chronic cough.

Besides the attractiveness of Algernon’s story, vision, etc. (check out this page at Streetwise Reports for a compilation of items on the company), one of the unique attributes of the company is that it has a mere 2.4 million shares or so outstanding.

Thus, a very small float and the potential to quickly add to its seeming break in recent days of an ugly downtrend. (And this speaks to the necessity as well of using a limit order when you move on this.)

Before the whole sector really imploded, Algernon had been preparing to get listed on the Nasdaq (it is on the OTCQB, so don’t let your broker tell you you can’t buy some if you have a U.S. account!) After a couple of recent raises, the company is in decent shape right now, with about CA$2.5 million on hand.

When broad market conditions and/or the company’s own progress bolster the share price/visibility further, I expect final steps will be taken to ratify what I’m told is already a “provisional” acceptance of Algernon by the Nasdaq. Consider Algernon an Immediate Buy; the company is added to my roster of speculative-rated companies.

Original story located at: https://www.streetwisereports.com/article/2022/09/01/expert-rates-pharma-co-an-immediate-buy.html

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