Zacks Small Cap Research – REVB Begins Trials with Good Cash on Hand – Technologist

By Brad Sorensen, CFA

NASDAQ:REVB

READ THE FULL REVBRESEARCH REPORT

Revelation Biosciences (NASDAQ:REVB) is a life sciences company focused on the development of immunologic-based therapies for the prevention and treatment of disease. Revelation has multiple product candidates in development that we believe have promising potential and are based on the biology of phosphorylated hexaacyl disaccharide (PHAD) and its effect on the innate immune system. The impact of PHAD on the immune system has been studied over multiple years and has been shown to have a positive effect on the human immune system. The company’s current therapeutic candidates are all based on the active ingredient PHAD, which is a synthetic version of MPLA, that is known to stimulate TLR-4. PHAD stimulation of TLR-4 leads to the production of multiple types of cytokines and chemokines which modulate the activity of the innate and adaptive immune response. Modulated activities may include stimulation and recruitment of infection fighting immune cells, down-regulation of inflammation, and/or upregulation of inflammation depending on the degree and nature of the stimulation which enables the multiple potential product candidates in development.

The current therapies being developed under the so-called Gemini project are:

• REVTx 300, which is being developed as a potential therapy for the treatment of acute and chronic organ disease including CKD, AKI and myocarditis.

• REVTx 100 is being developed as a prevention and treatment of infection.

In previous reports, we have detailed the success Gemini has had in preclinical trials, which included evidence of improved kidney function, reduced necrosis and reduced inflammatory biomarkers. After those successes, the company recently announced that Phase I testing is underway on Gemini—a crucial milestone for the company and one that we are anxious to see the results of in the coming months.

Revelation also released its 2023 annual report and 4Q2023 results. Those results confirmed that Revelation is a clinical-stage company that is focused on providing relief for numerous issues plaguing the public. Most importantly to us, the report revealed that the company had $12.0 million in cash on its balance sheet as of December 31, 2023, up from the $5.3 million seen at the same time in the previous year. Importantly, company management noted that the cash on hand is projected to be sufficient to fund operations through 2024.

Additionally, we continue to believe the toughest fund raise of the process for Revelation has been completed, leaving the company’s balance sheet in good shape and providing an opportunity, in our view, for investors to get into REVB at a good time-after a fund raise and just as testing on potentially exciting treatments is underway.

We are under no illusions that it’s easy to bring new therapies all the way to commercialization and Revelation will undoubtedly face challenges, but we believe that REVB is worth a look by investors due to the potential of the treatments being investigated, the science that has already been established behind those treatments, and the experienced management team the company has, headlined by the CEO who has overseen six INDs and two marketing approvals—experience we believe is needed to shepherd these treatments through the gauntlet of the FDA.

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