Entries in axovant (1)


Our Second Alzheimer's Investment: Neurotrope

On Friday, Neurotrope, Inc. (NTRP), a company focused on developing drugs to treat neurodegenerative diseases including Alzheimer's disease, announced that it entered into a definitive securities purchase agreement with accredited investors to raise approximately $20.2 million in a private placement of common stock and warrants exercisable for common stock. We acquired 1.5 million NTRP securities in this transaction. Press Release
To understand our investment rational, I will defer to an email conversation I had with an investor and a portfolio manager that knows NTRP inside out.
Thoughts on Neurotrope (NTRP)?  I know you follow the Alz space closely.
 Portfolio Manager:

I know NTRP very well. I met management in Boston a couple weeks ago.  I have accumulated 400,000 shares quietly this year, on way to a million shares.  I have poured through all Dr. Alkon’s papers, and everything else published. I will send you a bunch of stuff if you want. You know my rule that when it comes to CNS (Central Nervous System) indications I invest earlier stage than I generally do for other indications. Bryostatin, a Protein Kinase C epsilon activator was originally sourced from a marine organism, but is now synthesized in a 27 step process. It has been shown to stimulate neurotrophic growth factors such as BDNF/NGF/OGF/, and thus synaptic growth and function. Dare we even think disease modifying? Oh, it also activates amyloid degrading enzymes (ECE, Neprilysin, IDE).

 In summer 2015 in dumpster diving through everything written Alzheimer’s related, including all the trials on Alzheimers I came across Bryostatin P1. Much is already known about Bryostatin’s safety from failed Cancer trials, so safety is not an issue such as with mAbs like Aducanumab causing Edema. When the P1 of 9 severe patients (3 placebo (Aricept / NMDA), 6 treatment – 3 each on 2 different doses) was completed, some patients in the treatment arm requested that the FDA grant them compassionate use permission given the significant improvement they seen in only a month on the drug. Remember it was a safety trial.  The company provided the FDA with videos, which Dr. Alkon will send me, indicating the remarkable improvement in functionality.  NTRP has tons of non-controlled data they have never published but is with the FDA and behind their granting of the compassionate use.


They are recruiting in a 150 patient proof of concept trial, initially for 2 doses, but the FDA recently gave them permission to use a single dose since they have already seen leads to material changes, and speeds up the trial. Topline readout should occur Q1 next year (2017).

I was part of the group led by a hedge fund that voted to replace the former CEO and some board members with Dr. Suzanne Wilke and others.

This company has reputable scientists from the Rockerfeller Blanchette foundation with vast experience in Alzheimers and CNS indications.  Dr. Alkon was on Charlie Rose as an expert way back in 1993!!!

I will send you some stuff later today. But at a US $20 million enterprise value (post transaction), this stock should be worth 10X right now, and 50X current if the phase 2 data corroborates the research.  The FDA is DESPERATE to shuttle through any therapeutic that is showing disease modifying activity in AD.  If Anavex (AVXL) can have multi-hundred million mkt cap so can NTRP. NTRP has the ear and eyes of the FDA, and back by reputable science and scientist.

Neurotrope Patents Portfolio

If Bryostatin shows any benefit for patients, we believe its valuation will approach Axovant's (AXON) valuation minus the Vivek Ramaswamy factor.

At Bigger Capital we have a significant position in Promis Neurosciences (PMN.TO) which has developed 5 monoclonal antibodies (MABs) targeting 5 different strains of Alzheimer's disease associated with toxic misfolded Amyloid Beta proteins (Toxic Oligomers). Neurotrope addresses the synapses side of the equation.

Our AD investments are focused on small biotech companies that have more promising mechanism of actions (MOAs) than big pharma, and that are trading at a discount to their intellectual property cost. Intellectual properties that are novel and not anchored on 10 to 20 years old science hypothesis that have not created meaningful benefits for AD patients.

We are looking to make additional investments in the space and the first twelve minutes of this video will help you understand why we want to allocate more capital to the mechanism of actions located at or near this real estate. Let us know if you find anything. 

Michael Bigger. Follow me on Twitter and StockTwits.

Disclaimer: Bigger Capital and related entities are long more than 17million shares of PMN and 1.5 million NTRP securities. The likely outcome of an investment in early stage biotech companies is a loss of principal. Take our opinions with a grain of salt. If you find yourself relying on our views to make an investment decision it means you definitely did not do your homework about this situation. Please do not rely on our views, instead use the information as a jumping off point to begin your own independent due diligence.