OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) shares have pulled back nicely in recent trade after a massive run higher to start the year. The company has a very strong pipeline and some signals that it may have key catalysts ahead on a number of fronts. Since the current corrective move may provide new prospective investors with an opportunity given that backdrop, we are going to take a step back and refresh our take on this stock.

We first started following the story back in January, when we noted positives stemming from its potentially exciting pipeline asset in the $7B prostate cancer market (ProscaVax). However, we were concerned that the company was so far away from tangible sales growth that it might struggle to excite investors. As we have followed up on the story, we have seen that achilles heel possibly shored up with the acquisition of distribution rights to several commercial assets for marketing in several major international markets.

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.

It’s important to keep in mind that OBMP could be interesting as an easy fit for a few different names as far as a take-out candidate.

Just starting with those in the space who have shown a clear interest in development or acquisition of assets that offer potential for market share in the prostate cancer segment, one can easily point to the likes of Seattle Genetics, Inc. (NASDAQ:SGEN), Inovio Pharmaceuticals (NASDAQ:INO), Nymox Pharmaceutical Corporation (NASDAQ:NYMX).

The company also has a portfolio of targeted therapies. OncBioMune Pharmaceuticals, Inc. is headquartered in Baton Rouge, Louisiana.

Framing the Narrative

As noted above, the narrative for OBMP is intimately tied to the $7B prostate cancer market. But the company now has much more going on under the hood, which we will look at momentarily. But first, I wanted to make a point about the technical picture for shares of the stock on the chart.

There will always be squiggles and wiggles. But experienced investors know to focus on the 200-day simple moving average to get a big picture understanding of the stock’s trajectory over the large time frame. In this case, OBMP was in a major bearish trend according to its steeply dropping 200-day SMA for the past 2 years. That steep declining trajectory started to level off in February and has now almost flattened for the first time in years. If the next move in the stock is any kind of bounce, it will turn to a positive slope possibly marking the key inflection point in a long-term change of trend.

The narrative underlying that inflection may be playing out now in the form of the company’s aggressive move to gather immediately marketable assets.

For example, we have seen the completion of the acquisition of Vitel Laboratorios S.A. de C.V., establishing OncBioMune Mexico S.A. de C.V. as a wholly-owned Mexico City-based subsidiary of OncBioMune as it integrates Vitel’s operations into a component of the Company. The acquisition transitioned OncBioMune into a revenue-generating company with two recently commercialized drugs and a portfolio of others either already licensed or in negotiations for licensing or acquisition.

Sales in Mexico from September 16, 2016 to April 17, 2017 for Bekunis for constipation and Cirkused for stress were approximately US$350,000, exceeding projections for US$155,000 initially forecast for the first seven months at product launch during the third quarter of 2016. The Company anticipates that sales efforts will continue to accelerate and anticipates combined sales in the range of US$750,000 to US$850,000 for the products in 2017.

Similarly, we saw the acquisition of tretinoin, also known as all-trans retinoic acid (ATRA), an oral drug for the treatment of Acute Promyelocytic Leukemia (APL) for commercialization throughout Mexico, Central America and Latin America. This was originally announced as a license agreement.

Otherwise, we will follow with great anticipation coming results from the ProscaVax clinical trial process. We will leave off with words from the company’s CEO from its latest press release that frames this narrative quite nicely: “At this moment, there are a total of 48 drugs/drug candidates that are already under our control for specific markets or are the subject of negotiations. There is a lot of work in front of us to finalize agreements and bring products to market, but all is going according to design with revenue coming in and deals in the works that can bolster revenue many fold in the coming years as ProscaVax moves down the clinical path. We’re more confident than ever that we’ll look back on 2017 as a transformational year for our company by maintaining our course and continuing to successfully meet milestones.”