OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) is one of many stocks in the biotechnology space that have started to benefit from the election of Donald Trump. Just think about it: If Hillary Clinton had been elected, we would now be talking about new laws up for consideration mandating that drug companies reduce prices of their non-generic drugs to allow everyone to be able to afford them. That’s a fine idea. It’s impossible to argue against it, in fact. But it isn’t quite that simple.
Companies like OBMP have invested huge sums of money to develop treatments for life-threatening diseases. The surest way to make sure that no new revolutionary treatments are ever created again is adopt new laws that prevent investors from seeing a return on their investments in such projects. While it is likely that a Clinton administration would have acted with nuance enough to preserve investor incentives, markets had embraced the concern that things were at risk. The Trump administration has signaled that it will embrace a market-oriented view, and will likely seek to preserve profitability in the space, particularly for smaller players like OBMP.
OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) 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. OncBioMune Pharmaceuticals, Inc. is headquartered in Baton Rouge, Louisiana.
As we have noted, 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.
Rising Potential: As we have noted, OBMP is one of our favorite new players in the $7.1 billion prostate cancer treatment market.
It’s important to see the process now underway as establishing a foothold on potential. With an early stage biotech, the gains in the stock are made well before the company makes any money. The gains come as the situation becomes more promising. The stock fluctuates as a kind of Heisenberg meter of potentiality.
Recent news out of OBMP has consistently reinforced the sense that this company is gradually moving toward a state of greater promise simply because they will be likely entering into a phase II trial. That is usually an exceedingly important step for any emerging biotech stock.
However, intellectual property moves are also another great gauge of potentiality because IP is future money in present form, quite simply put.
For example, OBMP recently announced that the European Patent Office approved the Company’s patent application protecting ProscaVax as a PSA (prostate specific antigen) cancer vaccine. The patent is broad in scope covering an array of therapeutic cancer vaccine compositions built upon OncBioMune’s protein and antigen platform technology. The patent protects OncBioMune’s PSA cancer vaccine in 38 participating European Patent Organisation states.
“Our patent portfolio is now very robust, including covering ProscaVax in key markets, including the U.S., Mexico and now Europe,” commented Dr. Jonathan Head, Chief Executive Officer at OncBioMune. “Protection of intellectual property is integral to our strategy to become a global pharmaceutical brand.”
This takes us straight back to the election. Since investor incentives in the biotech space are likely to be better protected, and the incoming administration also favors a competitive environment, small biotech IP is elevated on all fronts in terms of future implied value in the market.
This all adds up to one conclusion: however promising OBMP seemed six months ago as a lotto ticker takeout candidate by another prostate cancer player, that dynamic is surely growing as the context favors the company’s intellectual property and that IP, itself, advances toward greater value.
We expect shares will come to reflect that dynamic over time.
Other top biotech stocks include Gilead Sciences, Inc.(NASDAQ:GILD), Celgene Corporation(NASDAQ:CELG), Amgen, Inc.(NASDAQ:AMGN), Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Alexion Pharmaceuticals, Inc.(NASDAQ:ALXN), Vertex Pharmaceuticals Incorporated(NASDAQ:VRTX)