Pharmacyte Biotech Inc (OTCMKTS:PMCB) fetched the attention of Goldman Small Cap Research which is a stock market research firm specializing on the microcap and small cap sectors. The firm said that it has released a new publication on Pharmacyte, a publicly-traded clinical stage biotech firm focused on formulation of treatments for diabetes and cancer. In the article, analyst Rob Goldman focuses on the impact of the current M&A activities and the Company’s standing.
As per the article, the market is witnessing a flurry of biotech mergers and acquisitions and Pharmacyte Biotech is well-positioned in the industry. It can be better viewed as an unusually attractive potential acquisition target. After all, most of the major pharmaceutical firms are in panic mode. In the face of patent expirations of key products, they are looking to find suitable options. There is stiff competition from the big companies as well as from startups conducting mid-late stage clinical studies. To face the two-sided attack, the managements have become a part of the quasi-arms race to rapidly merge companies via acquisition that well-complements their existing therapeutic categories.
Goldman further mentioned that since Pharmacyte ‘Cell-in-a-Box’ live cell encapsulation technology possess broad potential applications, it could surface as a universal and unique therapy for the treatment of several forms of diabetes and diabetes and compete with numerous existing, billion dollar products. It translates the company into a prototypical acquisition target.
Most mid-stage and early stage firms such as Pharmacyte are keenly aware of big companies desire to acquire companies with unique technology. It represents a unique opportunity that can fetch those billions in revenue. As a result, clinical trials are designed for maximum safety and efficacy. They are also intended to fetch the attention of the biggest pharmaceutical players across world.
In last trading session, the stock price of Pharmacyte surged 2.32% to close at $0.154.