SOURCE: BioMedReports

BioMedReports

June 21, 2010 14:42 ET

Goldman Small-Cap Research Reiterates Buy Rating for Rexahn Pharmaceuticals

LOS ANGELES, CA--(Marketwire - June 21, 2010) -  The latest analyst report by Goldman Small-Cap Research lists four reasons why shares of Rexahn Pharmaceuticals, Inc. (NYSE Amex: RNN) continue to be a "buy" at current price levels.

Rexahn recently hired Fred Frank, perhaps the most well known major pharmaceutical industry banker over the last 25 years, as a consultant to the company. BioMedReports is reporting that this development means the company is getting close to final negotiations for licensing either or both of their Phase IIb drugs, Zoraxel™ (sexual disfunction) and Serdaxin® (for depression). Both drugs have tremendous breakthrough potential and the company has publicly stated that they are actively engaged in discussions with at least six different large pharmaceutical companies.

Wall Street believes the potential deal to be nearly $1 billion and to be made up of milestone payments and double digit royalties with at least $50 million upfront. Company officials have said they expect the deal to be valued at 3 to 4 times the value of the current deal they have with Teva Pharmaceutical Industries for an experimental cancer-fighting compound, RX-3117, a small molecule, new chemical entity nucleoside compound being developed by Rexahn for treating a broad range of cancers.

That drug was only in the pre-clinical stages when it was licensed by Teva, but the data was compelling enough to cause Teva to invest nearly $4 million in Rexahn (at 20 percent over market), pay for all development costs and to take on $200 million in milestone payments thus far. The Zoraxel™ and Serdaxin® drugs are substantially further along in development (Phase IIb versus preclinical). Teva is also expected to pay a $4 million milestone payment when RX-3117 moves into Phase I in the coming months. Company officials expect that event to take place during the last quarter of this year according to BioMedReports.

The complete analysis of the company appears today at BioMedReports.com

Biotech investors interested in accessing the news portal's complete database of clinical trials and upcoming FDA decisions can access that information here:

http://biomedreports.com/fda-calendar/fda-calendar.html

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