AIM ImmunoTech (NYSEAMERICAN: AIM) released its results for the third quarter yesterday. After digging through the report, I’m seeing opportunity. Here’s what’s going on:
AIM Sets Strong Financial Foundation, Makes Clinical Progress, And More
In a press release issued early this morning, AIM ImmunoTech announced the filing of its 10Q for the third quarter and provided a business update. The first thing that stuck out to me was the amount of cash that this company has sitting in the bank.
As of September 30, 2019, the company had $11,730,000 in cash, cash equivalents and marketable securities. Considering the fact that the company’s market cap sits south of $3 million, that’s a huge cash balance, and it will provide AIM with the financial runway that it needs to make it through several catalysts ahead.
At this stage in the game, AIM ImmunoTech has provided its drug Ampligen to several key players that are largely funding or running the clinical trials. In fact, in the six ongoing immuno-oncology clinical trials AIM’s only responsibility is to supply Ampligen. This is VERY IMPORTANT, and here’s why: AIM believes that the combination of the Ampligen stock the company has on hand and the Ampligen that will be produced following its current polymer production run will be more than enough to meet all its clinical study commitments.
It’s also worth mentioning that these clinical trials are moving along smoothly, setting the stage for multiple catalysts ahead. For example, publication of survival data from a Phase 1/2 study of intraperitoneal chemo-immunotherapy in advanced recurrent ovarian cancer is expected in as little as three months. As an ode to the validity of the research being done surrounding Ampligen, the study is being conducted at the University of Pittsburgh Medical Center.
Even before then, the company is expecting to announce yet another catalyst: First enrollment in a Phase 1 clinical trial is expected to take place in as little as one month. In this trial, Ampligen is being assessed in combination with celecoxib, with or without Intron A, when given along with chemotherapy treatment. The target of the trial is early-stage triple negative breast cancer.
We also can look forward to AIM announcing multiple catalysts surrounding two separate-yet-parallel Phase 2 clinical trials that are funded by the U.S. Department of Defense. The DOD provided two grants totaling about $15 million to support the study of Ampligen as a potential synergistic agent in combination with several other immunotherapies in these trials. The goal of these trials will be to show safety, tolerability and efficacy in treating brain-metastatic breast cancer.
The Bottom Line
The bottom line here is a simple one. Due to various fund raises and grants, AIM ImmunoTech is now sitting on a strong financial foundation. Furthermore, due to overreactions to the fundraises that set the company on the strong foundation, AIM is highly undervalued. Just think, it has nearly five times the value of its market cap in cash and equivalents. At the same time, the company is part of multiple clinical studies that are largely funded by third-party players, such as the Department of Defense and Merck. All in all, if you’re not paying attention to this stock, you’re likely missing something big in the making.
Disclosure – The author is not a financial advisor. All investors should do their own research and consider speaking with a financial advisor before making investment decisions. CNA Finance, parent company to Alpha Stock News, has a monetary relationship with AIM ImmunoTech.