OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) has been one of our favorite “discoveries” in the biotech space over the past few months. This is a small player principally tying its fortunes to the R&D assets developed toward the $7.1 billion prostate cancer treatment market. The company’s lead asset is ProscaVax, which is currently in the planning stage of a Phase II clinical trial for the treatment of prostate cancer.
The company makes a lot of sense as a possible lotto ticker takeout candidate for a number of possible players. We’ve noted others such as Seattle Genetics, Inc. (NASDAQ:SGEN), Inovio Pharmaceuticals (NASDAQ:INO), Nymox Pharmaceutical Corporation (NASDAQ:NYMX), where there is pre-existing synergy and rationale. That said, in its own right, the company has very little in the way of current liabilities on the balance sheet right now, and has research momentum and authorization for a phase II trial, which may position them for strong terms on future funding and go-to-market.
OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) is, as noted above, 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. OncBioMune Pharmaceuticals, Inc. is headquartered in Baton Rouge, Louisiana.
In the Spotlight
Recent action suggests the market is beginning to agree with our enthusiasm on this name. In all, we’ve seen a major run of 78% in shareholder gains over the past month in OBMP. That rip comes in the context of a continuously expanding average daily transaction volume (trading in late January has seen an average of 315% more volume than has typified action in the stock over the past five months).
This last point is even more important for this stock in particular: OBMP has a tiny trading float (just 9.8M shares). The best way to signify the concept of “increasing market attention” is upward movement on increasing volume over a sustained period of days, whether or not there is new news released. We are definitely starting to see that for OBMP. And that concept is most powerful when it applies to stocks that lack a large floating supply of shares on the market. It’s basic supply and demand.
It may well be that a corner is being turned for this company where it’s relationship with capital markets is concerned.
The company’s recent press release focused on a key hurdle being achieved that granted full authorization to move ahead with the protocol proposed for the Phase 2/3 clinical trial of ProscaVax.
“Receiving authorization from both departments was not necessary and is a tremendous vote of confidence that directors of each unit are interested in participating in the clinical trial,” commented Dr. Jonathan Head, Chief Executive Officer at OncBioMune. “We now have the full weight and expertise of each department to oversee the study, support gathering patients for enrollment and all the equipment required to complete the protocol in hand. This is an incredible asset for us and should help ensure an efficiently run trial.”
So far, the market is starting to run with this news. OBMP is being discovered right now. There are many other high impact catalysts lined up ahead that will further augment this story. As more and more investors start to pay attention to this story, the impact of those catalysts should grow going forward.