Invex Therapeutics Ltd (ASX: IXC) shares have now doubled from their July 3 initial public offer price of 40 cents to 85 cents this afternoon as investors turn bullish on a company backed by Fortescue Metals Group Limited (ASX: FMG) chairman Andrew Forrest.
According to its prospectus, "Invex is a biopharmaceutical company focused on the development of efficacious treatments for neurological conditions derived from or involving raised intracranial pressure, such as Idiopathic Intracranial Hypertension (IIH), acute stroke and traumatic brain injury."
The company has taken the intellectual property of Dr Alexandra J Sinclair from the UK's University of Birmingham, with Dr Sinclair being appointed the chief scientific officer of Invex as it now attempts to commercialise its potential treatments for intracranial or 'within the skull' pressures.
The company has no revenue, so it's basically another speculative ASX-listed biotech business now worth $42.5 million based on 50 million shares on issue, with $12 million raised to go towards funding its "later stage research and development program".
A cynic might suggest you'd need as much cash to burn as Andrew Forrest to justify investing in this kind of business, with Mr Forrest also an early backer of ASX biotech and capital sinkhole Admedus Ltd (ASX: AHZ).
That's not to say Invex can't go onto be a big success, it's just hat it has a very long road ahead of it and unless you're a medical expert on intracranial pressure treatments it's difficult to know its chances.
