Coverage Initiated: January 2008

Resverlogix (Toronto:RVX) continues a BSR tradition of discovering out-of-the-way cardiology companies. This tradition was started when we initiated coverage on Esperion at under $5 a couple years ahead of its acquisition by Pfizer (PFE) for $30. The experience of covering Esperion, which was founded by members of the team that created Lipitor, allowed us to be early doubters of Pfizer's torcetrapib program. We predicted the program would fail even prior to the initiation of that Phase III program.

Resverlogix is developing RVX-208, which is supposed to boost production of the apo-a1 molecule. This molecule is thought to be the starting point for the body’s ability to produce high-density lipoproteins (HDL, or ‘good’ cholesterol). If done properly, boosting HDL levels creates Reverse Lipid Transport (RLT). This removes fatty buildups from the cardiovascular system and can actually reverse atherosclerosis without surgical intervention. If successful, a RLT drug with the right profile could easily equal sales of the champion LDL-lowering drug, Lipitor.

Resverlogix is traded on the Toronto Stock Exchange.

A complete listing of our research on Resverlogix is available by clicking here.