Analysts emphasize upside of Qualigen

To Buy or Not To Buy

Qualigen Therapeutics, Inc., based in Carlsbad, California, is a biotechnology company focused on the development of novel therapeutic products for the treatment adult and pediatric patients with rare cancers, as well as expansion of its flagship FastPack® diagnostic platform. The FastPack® line of FDA-cleared and CE-Marked products has been used in diagnostics since 2002. 

Qualigen’s therapeutics pipeline includes cancer drug compounds such as QN-247 (formerly referred to as AS1411-GNP or ALAN) and RAS-F, as well as STARS, a DNA/RNA-based treatment device. Combining its ability to develop and commercialize medical products with the capabilities of leading cancer research centers, such as the University of Louisville, Qualigen is committed to providing new therapeutic technologies to physicians and patients.

The FastPack® System is a proprietary diagnostics platform launched by Qualigen in 2001. This  immunoassay testing system consists of the FastPack Analyzer and the FastPack test pouch: a single-use, disposable, foil packet that includes the FastPack reagent chemistry. Since the initial conception of the system, the company has developed two versions of its analyzer and test pouch (1.0 and IP) and has expanded its assay menu to 10, including tests for prostate cancer, thyroid function, metabolic disorders and research applications.

Since its inception, the Qualigen’s R&D focus has been on its FastPack diagnostic system and related core technologies. These same technologies are now the basis for the company’s expansion into therapeutic applications for the treatment of cancer and infectious disease. Qualigen’s Selective Target Antigen Removal System (STARS) is an investigational therapeutic device product currently under development and evaluation. It will use core expertise in advanced reagents and coatings to remove disease associated agents directly from a patient’s blood. The key components of STARS, membranes coated with target capture reagents, use several proprietary processes developed and used in the FastPack product lines. Proprietary STARS cartridges will be designed for use with conventional dialysis or hemofiltration machines to treat patients with various cancers.

On December 1 Qualigen announced the closing of its registered direct offering with certain institutional investors for the purchase and sale of 5,880,000 shares of common stock for $1.50 per share for aggregate gross proceeds of $8,820,000. A.G.P./Alliance Global Partners acted as sole placement agent for the offering. The securities were sold pursuant to an effective shelf registration statement on Form S-3 (File No. 333-232798) previously filed with the U.S. Securities and Exchange Commission.

According to Ulysses Erickson of Marketing Sentinel, “In the last trading session, 3.6 million Qualigen Therapeutics Inc. shares changed hands as the company’s beta touched -0.67… When we look at Qualigen Therapeutics Inc.’s average trading volume, we note the 10-day average is 42.1 million shares, with the 3-month average coming to 6.83 million… Analysts gave the Qualigen Therapeutics Inc. (QLGN) stock a consensus recommendation rating of a Buy, calculated at a mean rating of 2.00.”

He revealed that the company’s shares were showing year-to-date downside of -60.80 percent, with the 5-day performance at -25.32 percent in the red, but, in the 30-day time frame, Qualigen was 1.72 percent up. There were 1.65 million shares sold at short interest over a period of 2.2 days. Erickson said that the consensus price target for the stock as assigned by Wall Street analysts is $6.50, meaning bulls need an upside of 81.85 percent from its current market value. According to analyst projections, the company’s forecast low is $6.50 with $6.50 as the target high. To hit the forecast high, Qualigen’s price needs a -450.85 percent plunge from its current level, while the stock would need to soar -450.85 percent to hit the projected low.

Analysts have projected higher expectations by upgrading Quaigen’s fiscal year 2021 revenue estimates. The rating firms predict current quarter revenue will rise 53.70 percent, while the growth in revenue is estimated to hit -122.40 percent for the next quarter. Consensus estimates from two financial analysts indicate that the company’s revenue in the current quarter will hit an average of $1.7 million. Two analysts believe that Qualigen’s revenue for the quarter ending December 2021 will be $1.75 million. The company’s revenue for the corresponding quarters a year ago was $1 million and $1.11 million respectively. Analysts expect the company to register a growth in its current quarter sales, forecast at 70.00 percent. Estimates for the next quarter sales place growth at 57.90 percent. The 2021 estimates are for Qualigen earnings to increase by 95.80 percent.

Hassan Masood of Stocks Telegraph said that Qualigen has soared 108.80 percent in aftermarket trading session. The stock was trading at $2.61, but it closed the day on December 6 at $1.25 after surging 25.62 percent during regular trading hours. He attributed the constant surge to the strong quarterly results. On November 15 Qualigen released the financial results for the third quarter of the fiscal year 2021. The company generated total revenue of $1.15 million against $0.83 million for the same period of 2020. Total expenses were $5.96 million against $4.55 million for the same period of 2020. The net loss suffered by the company during the period was $2.85 million (or $0.10 per basic and diluted share) against $8.11 million (or $0.41 per basic and diluted share) for the same period of 2020. The company had cash and cash equivalents of $12.31 million on September 30.

According to Michael S. Poirier, Qualigen chairman, chief executive officer and president, the company is encouraged by what it believes to be a strong quarter, as there was a 38 percent year-over-year increase in revenue. He also said that the company would continue to be encouraged by this increase and hoped that the developments in the therapeutics business would start paying the company more dividends.

On October 19 Qualigen announced the publication of a study in the peer-reviewed journal, Diagnostics. The publication validated the company’s point of care FastPack® IP diagnostics test as compared to a laboratory method that determined thyroid-stimulating hormone (TSH) levels in the blood. The study provided validation behind the evidence that supported the reliability of FastPack compared to laboratory tests.

While statistics show that the stock declined during the last 12 months, it appears that that the stock is making positive strides, even though slowly. Analysts believe that the recent performance could provide significant influence on potential investors to make investments in Qualigen.

Nicola Day of Newsheater said that Qualigen stock went down by -12.88 percent from its latest closing price compared to the recent 1-year high of $4.66. The company’s stock price has collected -32.35 percent of loss in the last five trading sessions. The average price from analysts is $6.50, which is $6.6 above the current price.