January 13, 2010
Recommendation
Buy ICAgen (Nasdaq: ICGN) up to $0.87 per share.
About the Company:
ICGN is a very exciting biotech company. They focus on the discovery and
development of novel small molecule drugs that modulate ion channel
targets.
I know it sounds complicated, let me explain…
Ions are charged particles, such as sodium, potassium, calcium, and
chloride. Ion channels are protein structures found in virtually every
cell of the human body. They span the cell membrane and regulate the
flow of ions into and out of the cell.
The concentration of specific ions in particular cells is critically
important to many vital physiological functions. That’s why ion channels
play a key role in a wide variety of processes in the human body.
Small molecule compounds can both open and close ion channels. As a
result, ion channels are important targets for intervention in a broad
range of disease areas.
In fact, there are 35 drugs on the market today that modulate ion
channels.
ICGN sets itself apart by taking a novel approach to ion channel drug
discovery and development. They’ve developed an integrated technology
platform that allows for efficient discovery of drug leads. Using this
proprietary technology and scientific know-how, the company has
identified several drug candidates that modulate ion channels.
The company is now focusing on conducting clinical and preclinical
studies in its core focus areas… Epilepsy and Pain, Pain Control, and
Inflammatory Disorders.
About the Drug Candidate:
ICGN is developing an amazing compound for the treatment of epilepsy and
neuropathic pain. At this early stage, the compound is referred to by
its International Non-proprietary Name… ICA-105665.
To avoid confusion, we’re going to separately discuss how ICA-105665 is
intended to treat each disease.
ICA-105665 as a Treatment for Epilepsy
Epilepsy is a disorder where abnormal electrical activity in the brain
causes seizures. Seizures often involve a sudden and involuntary
contraction of a group of muscles and loss of consciousness. They can
last anywhere from a few seconds to non-stop without intervention.
Epileptic seizures are caused by abnormal excitability of neurons in the
brain. These neurons then generate and transmit electrical impulses
inappropriately. Drugs that reduce abnormal neuron excitability
through the modulation of ion channels may prevent seizures.
ICA-105665 targets potassium channels on specific nerve cells. These
important nerve cells determine the excitability of neurons in the
nervous system.
By regulating the flow of ions in and out of these nerve cells,
ICA-105665 may decrease the electrical excitability of the cells. This
in turn may decrease the likelihood of inappropriate electrical signals
that cause epileptic seizures.
Clearly, a drug like this can change lives.
ICA-105665 as a Treatment for Neuropathic Pain
Neuropathic pain is a severe form of chronic pain often caused by damage
to the nervous system. Neurons become highly sensitized and produce a
painful response to stimuli normally not perceived as painful.
The most common causes of neuropathic pain are diabetes and shingles.
ICA-105665 targets the potassium ion channel located in sensory nerve
cells near the spinal cord. By reducing excessive neuron excitability in
these cells, the drug may eliminate neuropathic pain.
About the Market for the Drug:
ICA-105665 is being developed for two separate markets… epilepsy and
neuropathic pain. Let’s take a look at each one individually.
Epilepsy
Epilepsy is a large and growing market opportunity. In the U.S. alone,
some 2.5 million patients suffer from epilepsy. And, 180,000 new cases
are diagnosed each year.
Sales of drugs treating this disease totaled some $8.9 billion in 2006.
However, despite the variety of drugs currently available, about
one-third of epilepsy patients are resistant to them. And, each of these
drugs carries serious side effects like dizziness, drowsiness, fatigue,
nausea, and depression.
Neuropathic Pain
Over 1.5 million patients in the U.S., Japan, the U.K., France, Germany,
Italy, and Spain suffer from neuropathic pain. As of 2007, the
neuropathic pain market was estimated at $2.7 billion.
A variety of drugs are used to treat neuropathic pain, including some
anticonvulsants, tricyclic antidepressants, and antiarrhythmics. However, it remains a poorly treated condition.
The most common treatment, Neurontin, is effective in only about 30% of
patients. And, most of the other treatments have limited efficacy as
well as limited use due to their side effects.
As you can see, if it is ultimately approved by the FDA, ICA-105665 has
potential to generate huge sales in two very large markets.
About the Event:
ICGN is currently conducting a Proof of Concept study of ICA-105665 in
patients with photosensitive epilepsy. The study is designed to collect
efficacy and dosage range information. The data should help the company
design a larger Phase IIb trial for patients with chronic-treatment
resistant epilepsy.
The company is also conducting a Proof of Mechanism study of ICA-105665
for the treatment of pain. This study is designed to assess the ability
of ICA-105665 to decrease the sensation of pain.
The results of both studies are expected to be released around
the end of January 2010.
About the Shares:
If you take a look at a chart of ICGN, you’ll see it looks a bit like a
rollercoaster. Over the past year, the shares have traded from a low of
$0.31 to a high of $1.59.
The shares traded up to the high of $1.59 in August 2009. Investors
drove the shares up in anticipation of good results from a Phase II study
of the company’s drug candidate for asthma. Unfortunately, the results
were not good and the company decided to discontinue clinical testing.
The shares plunged as a result.
That’s great news for us. The drop in share price provides us with a
much better entry point for our trade. Although the shares have been
moving up over the past few weeks, we can still get in well below the
highs of last fall.
Grab your shares of ICGN now. We want to be positioned in the
shares
before the study results are announced. Remember, if the results are
positive, ICGN should soar for a nice short-term gain!
Keep in mind, ICGN is a thinly traded penny stock. Use a limit order and
mind your position sizing rules.
Key Facts:
| Company: |
ICAgen |
| Ticker: |
ICGN |
| Recent Price: |
$0.69 |
| Market Cap: |
$33 million |
| Avg. Daily Volume: |
90,750 shares |
Chart:
