Following our enormous win the junior gold mining space earlier this month, we are now ready to turn our attention to another market segment that offers the potential for home runs and grand slams on a regular basis: biotechnology.
Now lets research OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP). And, fortunately, it’s not a difficult study: there’s a ton to like here right now, particularly following the company’s most recent announcement detailing its success in its Phase Ia trial for its lead pipeline asset, ProscaVax, which is now heading into a Phase II study with momentum and promise, and toward the $7B prostate cancer market.
But OBMP is not as simple as the ProscaVax story. In recent months, under the leadership of its …., the company has diversified widely with the goal of funding future operations and R&D through actual revenues rather than hopes, promises, and dilution, which is the more common path for early-stage biopharma plays. That’s our focus today: why this company is different.
- OBMP has a small trading float of just 9.8M shares, which suggests the stock could launch higher on any additional influx of interest.
- OBMP has a lead drug candidate heading into the possible commencement of critical Phase 2 trials in the $7B prostate cancer space, with phase one now well sorted out.
- OBMP acquired the rights to six Aagaard Propolis products for the Mexican markets from the Company’s German partner roha Arzneimittel GmbH over the Summer. OncBioMune has begun the process to market the products across Mexico, with expectations for an official launch during the fourth quarter of 2017.
- OBMP also recently submitted an application to COFEPRIS seeking approval to commercialize an anti-rabies drug licensed from a NASDAQ-listed biopharmaceutical company.
- OBMP is working to complete licensing negotiations with the manufacturer of a key treatment with the goal of adding the new AAT therapy product to the Company’s portfolio for the Mexican market.
- OBMP management recently noted that the company had a total of 48 drugs/drug candidates that “are already under our control for specific markets or are the subject of negotiations.”
- OBMP is one of the most diversified biopharma microcaps on the OTC today, with an enormous array of revenue paths set to hit over coming quarters.
Understanding the Basic Story
OncBioMune has too often been lumped into the one-horse prostate cancer lotto as a shorthand way to understand the company. And that has misled longer-term shareholders into giving up on the story, which is perhaps the most compelling reason for new investors to take notice and give this stock a fresh appraisal. The critical factor in understanding exactly why that one-horse prostate cancer lotto story is wrong is the company’s process of intense diversification in its top-line potential over the past 6 months. In that time, we have seen one announcement after another that all focus on the same narrative: marketing and distribution rights to therapies that have commercial viability now.
The story really started with the acquisition of Vitel Laboratorios, S.A. de C.V, which got the
ball rolling for sales in Mexico of the Company’s licensed products, Bekunis for constipation
and Cirkused for stress. They both exceeded projections during the first six months on the
market and represented two commercially viable horses in the stable.
Sales from September 16, 2016 to February 16, 2017 were approximately $330K, exceeding
projections for $125K initially forecast for the first six months at product launch during the third
quarter last year. The Company anticipates that sales efforts will continue to accelerate and
anticipates combined sales in the range of US$750,000 to $850K for the products in 2017.
But that was just the beginning.
Just after the Vitel move, OBMP execs pulled off another similar move, announcing the signing of a licensing agreement between the Company and PROCAPS S.A.S. granting OncBioMune rights to tretinoin, also known as all-trans retinoic acid (ATRA), an oral drug for the treatment of Acute Promyelocytic Leukemia (APL), throughout Mexico, Central America and Latin America.
That was followed by the company’s announcement of an exclusive distribution and licensing agreement between OncBioMune and AqVida GmbH, a Germany-based FDF manufacturer specializing in the development, registration, manufacturing and distribution of generic pharmaceutical products, with an emphasis on the field of cancer therapy from their state-of-the-art facility in Dassow, Germany.
OncBioMune and AqVida are currently conducting negotiations regarding expanding the exclusive licensing agreement to cover commercialization in the Mexican markets the complete AqVida portfolio of medicines, including several used for treating the most common types of cancer.
Rather remarkably, the blitz toward commerce and revenues did not end there.
The company recently announced that it has formally acquired the rights to six Aagaard Propolis products for the Mexican markets from the Company’s German partner roha Arzneimittel GmbH. OncBioMune has begun the process to market the products across Mexico, with expectations for an official launch during the fourth quarter of 2017.
In this string of strategic moves, one might easily have overlooked yet another move tucked into the middle of Summer, when the company announced that it is now working to complete licensing negotiations with the manufacturer of a key treatment with the goal of adding the new AAT therapy product to the Company’s portfolio for the Mexican market.
Most recently, in an interesting move, the company has also recently submitted an application to COFEPRIS seeking approval to commercialize an anti-rabies drug licensed from a NASDAQ-listed biopharmaceutical company.
The Revenue Train
Hence, this is far, far more than just an early stage R&D play in the prostate cancer space. This is quite possibly the preeminent rising biopharma play in the Mexican and Latin American markets, with commercially viable revenue streams taking root in markets as diverse as Stress, Constipation, Rabies, AAT, Cancer, and Leukemia.
The moves are already starting to pay off. The company announced sequential top-line Q2 growth of 935%. That type of number should send a flare up to momentum investors if the stock starts to establish some newfound momentum on the chart.
We are coming into the end of Q3, and folks are sure to start to pricing in another major jump in sales. But the real remarkable point might come into year-end, when several of the company’s newest horses start to leave the stable and join the race, such as the six new products it will begin commercializing in Mexico in Q4 as part of its roha partnership deal.
However, perhaps the most interesting story is the mysterious AAT deficiency opportunity recently alluded to in company communications. Management is being a little cagey about the details for competitive reasons, but they are not being coy about its market potential.
“This is absolutely a blue ocean opportunity for us that could generate tens of millions of dollars in high-margin revenue by helping just a small portion of patients with AAT deficiency in Mexico. The first patient’s private insurance has already agreed to reimbursement, a positive sign for us moving forward,” commented Dr. Jonathan Head, Chief Executive Officer at OncBioMune. “Patients with AAT deficiency need to know that they have the disorder as soon as possible, information that could potentially lower the risk of developing life-threatening diseases by early intervention. We are optimistic that we will successfully negotiate the licensing agreement and fill this area of unmet medical need in Mexico.”
AAT deficiency is a lifelong condition requiring weekly injections, with the cost of some popular insurance-covered therapies in excess of $100,000 annually. That’s where the “tens of millions in high-margin revenue” notion comes from.Any way you slice the OBMP story right now, you get further and further away from the typical “one-horse, pre-revenue biotech betting it all on a long-shot.” This is strategically diverse commercial-stage organization with 48 horses in the stable and a radical top-line revenue growth acceleration that has already begun.
That said, the biggest horse in the stable is still its prostate cancer ticket, ProscaVax.
The drug recently completed a Phase 1-a study with strong results. The study enrolled 20 biochemically progressing prostate cancer patients, four of which dropped out due to disease progression (3 with increasing PSA, 1 radiological).
Perhaps even more interestingly, the study further evaluated secondary objectives that could suggest efficacy for ProscaVax having a meaningful benefit in treating late-stage prostate cancer. According to the company, “At a median follow-up of 31 months post-final vaccination, 9 of the 14 evaluable patients (64.3%) who received all six vaccinations had increased PSA doubling time, suggesting ProscaVax was slowing tumor growth. 12 of 15 patients (80.0%) completing the protocol had an increased immune response to PSA as determined with a Lymphocyte Blastogenesis Assay.”
That is basically the ideal outcome for a Phase 1 study: no toxicity, but indications of a therapeutic benefit. From here, we will likely now see the company release full details of the plan going forward, including the outline of its upcoming Phase 2 research on the drug.
As noted above, the prostate cancer market is massive, with over $7B in total sales on the line. If the market begins to take ProscaVax seriously – as a real contender in this space – then we could be looking at a massive repricing of OBMP shares. The successful closing of its Phase 1 study puts that on the table going forward.
OBMP (OncBioMune Pharmaceuticals Inc.) is a clinical stage biopharmaceutical company that develops cancer immunotherapy products.The company has proprietary rights to a breast and prostate patent vaccine; and a process for the growth of cancer cells and targeted chemotherapies. Its lead product is ProscaVax that is in the planning stage of a Phase II clinical trial for the treatment of prostate cancer. The company also has a portfolio of targeted therapies for international marketing and is headquartered in Baton Rouge, Louisiana.
We have received five thsnd dollars via a bank wire for the awareness of OBMP.
We have previously received five thsnd dlrs via a bank wire for the awareness of OBMP which has since expired.
All of the information in this blog is gathered from public information released by the company.
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