Tuesday, January 12, 2010

RNAi Therapeutics Portfolio Update: RXi Pharmaceuticals (Sell)

I have decided to sell all of RXi Pharmaceuticals in the RNAi Therapeutics model portfolio (for $4.49). This is partly an opportunistic move that comes after a remarkable meteoric ~200% run-up from its all-time low of $1.51 in the absence of a change in fundamentals (a recent overview can be found here), and a new CEO that needs to be able to learn as fast as the stock price has risen. I will keep the proceeds as cash for now, as I continue to research one particular company as a potential candidate for re-investing the proceeds. Stay tuned.

Disclaimer: Investments in RNAi Therapeutics are highly risky and not suited for most people. The purpose of the blog and model portfolio is to convey a sense of the dynamics in the field and is NOT an endorsement for making related investments. I also have financial interests in some of the companies included in the portfolio. I do not, however, have short positions in any of those.

4 comments:

Anonymous said...

PNAS article now online...would be interested in your comments

Anonymous said...

Good sale........

Anonymous said...

Do you believe that the recent price movement in RXi lends credence to the rumors that they are about to forge a partnership with a major biotech/big pharma company? I enjoy reading your blog. Thank You

Dirk Haussecker said...

It would almost seem so. I'm not sure though what the potential partner sees in RXi. IMO, they are critically deficient in viable delivery technologies and their access to Tuschl is limited which makes it a little less likely that they are being approached for that reason. From the data that I have seen, there is nothing magical about self-delivering siRNAs. Whatever the reason, it would be a good sign for the continued/resurgent interest in Big Pharma in RNAi Therapeutics.

By Dirk Haussecker. All rights reserved.

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