The star swiss micro cap pharma company is becoming a decent bet in the middle of a bear market for penny stocks. Micro cap stocks have been plummeting since reaching absurd February highs. The Bitcoin bull market and a pivot to value in 2021 has really put pressure on stocks below $5 and there’s no signs of this letting up.
There are no exceptions to this micro cap bear market. $RLFTF’ stock is not unusual in this regard, down 76% over the course of the last year and approaching $0.14 on the OTC.
If there was an $OTC stock to pick up while it’s this beaten down it would be Relief.
- They await the U.S. FDA’s decision on the Emergency Use Authorization for IV RLF-100 (aviptadil) filed by our collaboration partner, Neuro Rx, Inc. This is one of the most promising ICU treatments for Covid-19, where a massive nursing shortage is coming in 2021 globally. (their partner’s stock is $NRXP).
- Relief in 2021 have successfully transformed the company into a fully integrated, multi-product, revenue-generating biopharmaceutical company.
- They had a key acquisition not too long ago in APR Applied Pharma Research s.a. thereby expanding and diversifying their specialty drug pipeline, added key commercialized products, provided a European based commercial infrastructure, and offers an internal R&D capability.
- They have another collaboration partner with Acer Therapeutics, where they recently filed an NDA with the FDA for ACER-001 for the treatment of urea cycle disorders.
- Their acquisition of AdVita Lifescience GmbH brings them yet more key pending intellectual property that may cover an improved inhaled formulation of RLF-100. IV RLF-100 continues to be evaluated as a treatment for severely ill #COVID19 patients, and the inhaled formulation is being tested in two clinical trials in COVID-19 patients. They are rapidly pursing the European side where the treatment is expected to reduce mortality rates in ICUs.
- You can see their first-half 2021 results here.
So Relief has come a long ways, even if they are still a mostly unknown pharma company in the West. For those of us who played OTC stocks in 2020, we know how quickly this stock can go up. It went from $0.04 to $0.62. That’s a 15x move, and what happend before can happen again given the right macro environment for the micrp cap sector.
There’s reason to be optimistic since in April 2021, NeuroRx announced that RLF-100 had been selected for inclusion in TESICO (Therapeutics for Severely Ill Inpatients with COVID-19), an international, phase 3, multicenter clinical trial being sponsored by the U.S. National Institutes of Health (NIH).
Then more recently in June 2021, NRx Pharmaceuticals Inc. (NRx), the parent company of NeuroRx, announced that NeuroRx had submitted its EUA application to the FDA for the use of RLF-100 in the treatment of critically ill COVID-19 in patients with respiratory failure.
With ICUs all over the world churning nurses who are burnt out, over-worked and not being compensated properly, many healthcare systems will begin to break down. This is already happening in pockets off and on, all over the world.
So how do we know that RLF-100 actually works?
In July 2021, NRx reported that it identified a statistically significant effect of RLF-100 in preventing the sharp rise in cytokines, commonly associated with mortality in patients with COVID-19. The data was collected as part of the ongoing U.S. phase 2b/3 trial and NeuroRx reported that it had submitted these findings to the FDA as a supplement to the pending EUA application.
As Delta challenges societies with a new normal and possible further mutations are taking place, this one of only a handful of treatments with the potential to save lives.
It’s been a big summer since also in July 2021, NRx announced the successful validation of the commercial formulation of RLF-100 for IV use, allowing for high volume manufacture, with an anticipated one year or greater stability, under appropriate storage conditions. So Relief is the main beneficiary of this work since they hold more of the global and European rights.
All preliminarily results have been quite positive. In August 2021, NRx reported a new analysis showing that patients with acute respiratory failure due to Critical COVID-19 who were treated with aviptadil demonstrated improvement in blood oxygen, indicative of improved lung function, within a day of starting treatment.
It’s likely so lucrative and effective, the greedy pharma industry in the U.S. is trying to cheat Relief out of some of its incredible profits with some legal delays (this is only my opinion).
Meanwhile Relief is proceeding with the European side regardless. In September 2021, AdVita received regulatory clearance to commence a phase 2 clinical trial in Germany to evaluate inhaled aviptadil for the treatment of sarcoidosis.
Relief has had two major acquisitions in 2021 with an operating loss amounted to CHF 14.5 million with operating expenses of CHF 15.4 million and a one-time gain of CHF 0.9 million following a third-party debt write-off.
On July 27, 2021, the company issued and listed an additional 1 billion common shares. On July 27, 2021, Relief acquired AdVita in exchange of EUR 25 million in Relief shares and possible future contingent payments of EUR 20 million payable in cash.
Personally as a stock picker, I cannot be happier with the moves they did in the first half of 2021 and the bear market for micro cap stocks could even send this stock down a further 4 cents in my opinion to $0.10. At that point I’m going to load up once again.
I see Relief being a $2 stock in 2023. As such I see Relief as a 20x play in the future of micro cap trading. It’s fundamental growth pipeline could not be better and it’s Swiss lack of reputation among American investors can be used to our advantage as investors. Even it’s weird legal troubles with America’s greedy pharma industry allows it to fall back down only to rise again later stronger.
This is nothing short of the most promising Covid-19 stock of 2022. But do your own due diligence if you can, if you don’t understand the micro cap bear market, don’t confuse sentiment with reality. The stock market is in a massive bubble, and whether Chinese or Micro cap stocks I recommend buying only when there is a significant correction and Bitcoin falls below $20,000 again.
I am direly worried about ICU nursing shortages in 2022 as the Delta variant continues to mutate and vaccines don’t prevent breakthrough cases. Treatments in the ICU are paramount to save lives. That’s my main thesis of why I see Relief as a decent company to invest in for the long-term.
For my top stock picks I write a Newsletter behind a paywall here.