In The Spotlight: Eloxx Pharma

(RTTNews) - Shares of Eloxx Pharmaceuticals Inc. (ELOX) have gained an impressive 65% so far this year while the iShares NASDAQ Biotechnology Index (ETF)(IBB) is down 4.5% during the same period.

Eloxx is a biopharmaceutical company focused on discovering and developing novel therapeutics for the treatment of rare and ultra-rare genetic diseases.

The Company's lead drug candidate is ELX-02, being developed for the treatment of cystic fibrosis and cystinosis.

Cystic Fibrosis (CF), the most prevalent genetic disease in the western world, is a chronic disease affecting the lungs and digestive system, and is caused by mutations in transmembrane conductance regulator (CFTR).

Cystinosis is an ultra-rare lysosomal storage disease caused by mutations in cystinosin (CTNS), and it primarily affects the kidneys and eyes.

The Company has completed a phase Ia, single dose escalation study of ELX-02 in healthy adult volunteers in Israel. The compound has been found to be safe and well-tolerated, with no reports of adverse events.

A phase I multiple dose escalation study of subcutaneously administered ELX-02 in 45 healthy volunteers in Belgium is underway.

Near-term Catalysts:

-- The Company expects to submit a clinical trial application (CTA) for ELX-02 in Belgium for cystic fibrosis in mid-2018. -- An IND for ELX-02 for cystinosis is also expected to be filed with the FDA in mid-2018. -- ELX-02 is expected to move into phase II studies in cystic fibrosis and cystinosis, by the end of 2018, subject to regulatory review and clearance of the CTA and IND, respectively. -- Eloxx may nominate the second novel molecule for development in rare/ultra-rare orphan disease soon.

Recent events:

On April 26, 2018, Eloxx's common stock, which was trading on over-the-counter securities market, was uplisted to the Nasdaq Global Market.

The same day, i.e. on April 26th, the Company offered to sell 5.13 million shares of its common stock to the public at a price of $9.75 each. The underwriters were granted a 30-day option to purchase up to 769,500 additional shares of ELOXX's common stock.

On April 30, 2018, the Company completed the underwritten public offering and exercise in full of the underwriters' option to purchase additional shares. The gross proceeds from the offering were approximately $57.5 million. The Company had cash of $24 million at year-end 2017.

What next?

Eloxx is scheduled to release its first quarter 2018 financial results, and provide a company update on Thursday, May 10, 2018, after the market closes.

ELOX touched a high of $14.20 in intraday trading on Wednesday, before closing at $13.45, up 1.43%. The stock has traded in a range of $3.60 to $14.20 in the last 1 year.