20 Jan SNSS Research Report
Dave’s Note : Sent to TPS members on 1/20/21 pre-market at $3.10. This is a private link of that behind the paywall report.
6-12 month target $8.25 plus
Viracta is committed to advancing new medicines to benefit patients with viral-associated cancers and other serious diseases.
Viracta’s proprietary platform is a highly targeted combination therapy approach for virus-associated malignancies. Our initial focus is on cancers associated with the Epstein Barr Virus (EBV). We will also expand into additional applications to utilize this approach for a range of cancers and virus-associated diseases.
Trading under the symbol SNSS currently (Sunesis Pharma), Viracta will reverse merge into the SNSS shell in the 1st first quarter 2021, possibly as early as February. This is almost like SPAC deal in that its pre-funded, reverse merging, changing symbol etc. Have to get long before everyone figures out the upside here- Dave
120m Shares outstanding estimated following the reverse merger.
Current estimated market cap at 360 million at $3 a share
120m cash from my research post merger, or $1 per share equivalent out of a $3 share price, fully funded.
- Concurrent with the merger, a symbol and name change, a 1 for 3 up to a 1 for 6 reverse split per management to drop the share count and raise the share price, (more attractive to institutions), then likely coverage by a few wall street firms following the listing, and trial data readouts and more.
- A second lead program in 2021 as well is on tap for another herpes virus indication. All of the aforementioned will start to move the shares out of this range if I’m right and towards $8 (Pre split adjusted) in 12 months or perhaps much less time.
Once the merger is closed, Viracta Therapeutics will be a public oncology company with top tier institutional investors, an experienced and accomplished management team, a robust oncology platform targeting virus induced malignancies, and an important partnership with Nankwest (NK).
my 6-12 month target is $8.25 (Pre split and merger price based on SNSS price today) assumes a 1 Billion market cap
Dr. Royston is currently the CEO of Viracta Therapeutics, a portfolio company of Forward Ventures which he heads, a legend in Biotech investing and exiting those companies/investments to big pharma…and key to the story.
He has left the helm of his venture fund, just to run Viracta, that is how much be believes in the science here for cancer treatment with a twist…
He sold his last Pharma on an exit from his Forward Venture fund holdings at a 7 Billion market cap.
Lets look at his track record…
- Dr. Royston founded Hybritech, which was then acquired By Eli Lily.
- Founded Idec pharma, which later merged with Biogen
He then launched Forward Ventures, which brought the following companies public and SOLD:
- Applied Molecular Evolution (acquired by Eli Lilly)
- Combichem (acquired by DuPont);
- Corixa (acquired by GlaxoSmithKline);
- Genesys Therapeutics (merged with Somatix and acquired by Cell Genesys);
- LigoCyte (acquired by Takeda);
- Morphotek (acquired by Eisai);
- TargeGen (acquired by Sanofi-Aventis);
- Triangle Pharmaceuticals (acquired by Gilead).
Always pay attention to management and the value creators, they tend to repeat success. (Terren Peizer of BIVI comes to mind)