Rxi Pharmaceuticals (RXII) will be presenting next Wednesday September 10th at the Rodman & Renshaw conference. Usually, these conferences are routine. Companies lay out what most investors already know. But this time it is different for Rxi. Rxi stated in its press release today that it will show data on novel targets in the dermatology field and release data from its phase 2a interim trial using RXI-109 against hypertrophic scars.

RXII has the potential to make significant gains when the phase 2a results are released. Due to evidence discussed in a previous article, we believe that the data will be positive. RXII's share price has risen by 40% over the last 5 days in anticipation of these phase 2a interim results. Even with this recent gain, the company's market cap is only $60 million.

We believe RXI is still undervalued compared to its trading peers in similar phase 2 trials such as Arrowhead Research Corp (ARWR) which trades at a market cap of $800 million and Tekmira Pharmaceuticals (TKMR) which has a market cap of 440 million. 

That Rxi trades lower than its RNAi technology peers may have propelled the share price higher this past week. If the phase 2a results come out clearly positive it will validate Rxi's technology platform known as the "sdrxRNA" platform--a platform combining both the properties of RNAi and RNA into one drug molecule that can be delivered directly onto tissue, such as eyes or skin, without using a delivery vehicle. RNAi stands for RNA interference and is a technology that provides the ability to shut off genes at the source (before they produce a protein). 

To date there are no RNAi therapies approved by the FDA. The results of the study could validate Rxi's sd-rxRNA platform. Validation will help the company expand its technology to other billion of dollar markets. 

With positive results in RXI-109 against hypertrophic scars, the estimated sales could be around $1.5 billion dollars as a low estimate. 

We believe that Rxi Pharmaceuticals is still undervalued at $60 million market cap and that Rxi has room to run higher before the potential phase 2a data in hypertrophic scars are released. Next Wednesday, the company may discuss its novel compounds in detail, and go a little in depth on the phase 2a results in hypertrophic scars.