OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) has pulled back aggressively, but certainly appears worth a fresh look after the company’s latest updates. The narrative here is quite interesting: after what appears to have been aggressive convertible debt selling last month, the company has come out with two big announcements in recent days that have started to spring the stock back to life.
First, the company announced the completion of the acquisition of the sanitary registration and intellectual property rights of Norepinefrine (Norepinephrine) for the Mexican market from Teva Pharmaceuticals Mexico, S.A. de C.V. (Teva), the Mexican subsidiary of Teva Pharmaceuticals, Ltd. Second, the company announced that a patent has been granted by the Japan Patent Office for “Composition and Method for Treating Cancer” that will protect the intellectual rights of OncBioMune’s ProscaVax in Japan until January 8, 2032.
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.
A Deep Discount?
As we discussed recently, the stock has been beaten down on what appears to potentially be some tape action related to the processing of some converts rolling off the books. But that selling comes into the teeth of several strong announcements, as noted above. The company’s recent move to take Norepinefrine from Teva is perhaps more interesting than one might at first see. The drug is approved in Mexico, according to company materials, as indicated for the treatment of low blood pressure and heart failure. OncBioMune intends to immediately initiate distribution of Norepinefrine throughout its sales channels across Mexico.
According to the company’s recent release, the Norepinefrine registration can also be used in other Central and Latin American countries. OncBioMune is conducting its due diligence with plans to selectively launch the drug in other markets in the future.
“The acquisition of Norepinefrine adds the first big generic medicine to our Mexican product bag and we anticipate it will immediately gain traction with physicians,” commented Andrew Kucharchuk, President and Chief Financial Officer at OncBioMune. “We are feeling very confident in our future, given Bekunis® had a record sales month in May, the approval of our male fertility product Andfrt® two weeks ago and now closing the acquisition of Norepinefrine. Our team is already mobilizing to bring Andfrt® and Norepinefrine to market and making sure the supply chain can meet expected demand.”
As far as the approval of the patent for ProscaVax in Japan, one should note that ProscaVax is a clinical-stage protein therapeutic cancer vaccine combining tumor-associated antigens with biological adjuvants to selectively target tumor cells without damage to healthy cells.
In addition, it’s a rather impressive fact to note that OncBioMune’s intellectual property portfolio protecting ProscaVax and other technologies consists of 16 patents spanning approximately 50 countries worldwide. Shares of the stock had dipped under key support at the $0.10 level earlier in June. That level is important because it marks where the stock found support earlier in 2017, before it launched higher over 300% in less than two months. With the company’s recent moves, we have seen that dime level retested and some new upward momentum perhaps potentially re-established. Transaction volume has certainly picked up massively in recent action as well.
In all, the chart shows 73% piled on for shareholders of the listing during the trailing week. As you can plainly see, OBMP has evidenced sudden upward volatility on many prior occasions. Furthermore, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed a bit over 180% over the long-run average.
This should not be overlooked due to the extremely small float size in the stock (of 9.8M shares). As you know, a tight float can introduce supply shock conditions if demand starts to spike. With the dime level back under attack by the bulls, one doesn’t have to strain to imagine such an outcome here.