The recovery is well underway in the broad stock market. But there are still plenty of interesting values out there that have the potential to make major moves in the days, weeks, and months ahead. Some of the most interesting opportunities are in the small-cap biotech space, where volatility and growth often go hand in hand.
Today, we want to quickly cover three stocks that fit this narrative quite nicely: Zai Lab Ltd (NASDAQ:ZLAB), Q BioMed Inc (OTCMKTS:QBIO), and Novavax, Inc. (NASDAQ:NVAX).
Zai Lab Ltd (NASDAQ:ZLAB) promulgates itself as a biopharmaceutical company that engages in discovering or licensing, developing, and commercializing proprietary therapeutics that address medical needs in the fields of oncology, and autoimmune and infectious disease therapies in the People’s Republic of China.
Its drug candidates include ZL-2306, a poly ADP ribose polymerase 1/2 inhibitor, which is in Phase III clinical trial for the treatment of ovarian, lung, and breast cancers; ZL-2401, an antibiotic that is in Phase III clinical trial to treat ABSSSI, CABP, and UTI; FPA144, a humanized monoclonal antibody, which is in Phase I/III clinical trial to treat gastric and gastroesophageal cancer; ETX2514, a novel ß-lactamase inhibitor that is in Phase II cUTI trial for the treatment of acinetobacter baumannii; and ZL-2301, which is in Phase III clinical trial to treat HCC.
ZEJULA (niraparib, ZL-2306) is a highly potent and selective oral, once-daily small molecule poly (ADP-ribose) PARP 1/2inhibitor. It was approved in March 2017 by the FDA in the United States and in November 2017 by the EMA in the European Union under the trade name ZEJULA® as a maintenance treatment for women with recurrent epithelial ovarian, fallopian tube, or primary peritoneal cancer who are in a complete or partial response to platinum-based chemotherapy. Based on the approval status in the United States and European Union by our partner, Tesaro, Zai Lab has obtained the approval for marketing ZEJULA in Hong Kong in October 2018.
The company’s drug candidates also comprise ZL-3101, a novel steroid-sparing topical product that is in Phase II clinical trial for the treatment of eczema and psoriasis; and ZL-2302 to treat non-small cell lung cancer. The company, through its subsidiary, Zai Lab (Shanghai) Co. Ltd., has a collaboration agreement with the NovoCure Limited to perform clinical studies, sell, and import tumor treating field products in the field of oncology. Zai Lab Limited was founded in 2013 and is headquartered in Shanghai, the People’s Republic of China.
Zai Lab Ltd (NASDAQ:ZLAB) had no reported sales in its last quarterly financial data. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($177.7M against $10.3M).
Q BioMed Inc. (OTCMKTS: QBIO) is an interesting player in the small float small-cap biotech growth space that has projects in motion to attack a major growth market (non-verbal learning disorder) with little competition and big potential. And the chart is screaming that smart traders and investors should do some due diligence here – which is why we put in front of you today.
This is a biomedical acceleration and development company that focuses on licensing, acquiring, and providing resources to life sciences and healthcare companies.
The company offers Strontium Chloride SR89, a radiopharmaceutical agent for the treatment of pain associated with metastatic bone cancer. It is also developing Man-01, a pre-clinical lead candidate for the treatment of primary open angle glaucoma. Q BioMed Inc. has a partnership with Sphaera Pharma to develop an analog of QBM-001 for pediatric developmental nonverbal disorder; and a collaborative agreement with SRI International to provide formulation development, preclinical development, and early clinical manufacturing of QBM-001.
The company was formerly known as ISMO Tech Solutions, Inc. and changed its name to Q BioMed Inc. in July 2015. Q BioMed Inc. was founded in 2013 and is based in New York, New York.
According to company materials, “We are focused on licensing and acquiring undervalued biomedical assets in the healthcare sector. Q is dedicated to providing these target assets; strategic resources, developmental support, and expansion capital to ensure they meet their developmental potential, enabling them to provide products to patients in need.”
Q BioMed Inc (OTCMKTS:QBIO) has a strong balance sheet, with cash levels far exceeding current liabilities ($787K against $707K).
Novavax, Inc. (NASDAQ:NVAX) bills itself as a clinical-stage biotechnology company that focuses on the discovery, development, and commercialization of recombinant nanoparticle vaccines and adjuvants.
Its lead adjuvant is Matrix-M that is used to enable a vaccine to enhance the amplitude of the immune response and qualitatively change it, enhance its specificity to provide protection against related microorganisms, as well as allows immunization with much lower doses of antigen.
The company develops respiratory syncytial (RSV) virus fusion protein nanoparticle vaccine candidate for infants via maternal immunization in Phase III clinical trial; older adults in Phase II clinical trial; and children six months to five years of age in Phase I clinical trial.
Novavax, Inc. also develops NanoFlu vaccine, which is in Phase I/II clinical trial for treating seasonal influenza in older adults; and Ebola virus glycoprotein vaccine that is in Phase I clinical trial. Its preclinical programs include Zika virus; combination respiratory vaccine candidate to protect against RSV and seasonal influenza, as well as other infectious disease vaccine candidates.
Novavax, Inc. (NASDAQ:NVAX) generated sales of $7.7M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -28.2% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($144.7M against $46.7M).