OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) is a small biotech player we have covered a few times recently, noting that the stock looked increasingly interesting given its R&D assets as either a very cheap buyout target or a deep value lotto ticket in the space for speculative funds. The week is turning out to be a vindication of that outlook as the stock is starting to power higher on the company’s announcement on Wednesday that the key regulatory authority in this matter has granted full authorization to move ahead with the protocol proposed for the Phase 2/3 clinical trial of ProscaVax.
This is the big news the company was waiting for, and should put them on the prostate cancer pipeline game board, along with key players such as Seattle Genetics, Inc. (NASDAQ:SGEN), Inovio Pharmaceuticals (NASDAQ:INO), Nymox Pharmaceutical Corporation (NASDAQ:NYMX). The key news came from the Department of Urology of the High Specialty Hospital IMSS Siglo XXI in Mexico. In the study, ProscaVax, OncBioMune’s lead experimental therapeutic cancer vaccine, will be evaluated for safety and efficacy in prostate specific antigen (PSA) recurrent prostate cancer in hormone-naïve and hormone-independent patients.
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.
A Perfect Storm
According to the company’s press release, the authorization from the Department of Urology follows a recently received authorization to perform the protocol from the Department of Oncology at HSH IMSS. The move sets up a potential breakthrough study that may really put this stock into a spotlight among major Wall Street firms and main street investors.
“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.”
Shares of OBMP have already been performing very well, ripping off 33% in overall gains for shareholders over the past month of action. Perhaps more importantly, as we look ahead, this stock is trading on a very small float, with less than 10 million shares rattling around on the tape.
That becomes extra important if you consider that, even ahead of this announcement, transaction volume was picking up fast – with the average volume up just shy of 270% beyond its prior sustained average level. A tight float and rising average volume, and the potential for major announcements on biotech IP is what you a perfect storm.
To drive the point home a little further, the prostate cancer market is a $7.1B market right now, and unfortunately one that is growing fast. People suffering from this terrible disease need solutions. OBMP is a company that might have a competitive answer to that problem. Wednesday’s press release was a note to the world that a door is opening for the company to start to find out whether or not it has a golden ticket.