Zacks Small Cap Research – REVB Continues March to Trials – Technologist

By Brad Sorensen, CFA

NASDAQ:REVB

READ THE FULL REVB RESEARCH 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 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.

The company has announced that Phase I testing is set to begin on Gemini in the very near future—a crucial milestone for the company and one that we are anxious to see the results of.

We 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, to get into REVB at a good time-after a fund raise and just before testing on potentially exciting treatments begins.

Additionally, the company recently announced a reverse stock split of 1 for 30 in what we view as an effort to make the stock more attractive to shareholders. Mathematically, nothing really changes with the company by this news, but sentiment for the stock may be improved by the move. As far as our valuation is concerned, we are conscious of this sentiment factor, and don’t think that 30 times our previous target is appropriate, so we adjust that down in order to accommodate for those sentiment factors, but not as a result of any reduction in our viewpoint of REVB.

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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