Nascent Biotech Inc. (OTCMKTS:NBIO) is an emerging player in the $4 billion oncology drug development space. NBIO is early-stage – its flagship drug is just heading toward Phase 2 clinical research – which is in the sweet spot for dealmaking as a potential acquisition target as deals pick up pace this cycle.
In other words, it’s the definition of long-duration growth, which has been out of favor so far in 2022 due to the rising trend of interest rates as the Fed battles inflation. But NBIO has sharply outperformed other similar stocks (and the market as a whole) by moving through its clinical research pathway without obstacles and by shoring up its intellectual property base at the same time.
At the same time, long-duration growth plays have surged over the past week as speculation grows that the Fed is nearing an inflection in its battle following last week’s cooler-than-expected CPI number and recent analysis from top Wall Street firms that the inflation trend is shifting.
That has likely ramped up the take-out target narrative as bigger players feast on early-stage pipelines showing promise in big TAM markets.
Some Background on NBIO
NBIO’s main asset is Pritumumab (PTB), a natural human antibody that binds to cell surface Vimentin (also referred to as ectodomain vimentin), which is a protein expressed on the surface of epithelial cancers. PTB is used as a targeted immunotherapy that “seeks out” cancer cells while leaving normal, healthy cells unharmed.
The R&D journey for Pritumumab began in 1982 in Japan, where research showed there might be real benefits from PTB for brain cancer patients.
However, there wasn’t much follow-up to initial research at the time and it took Nascent Biotech to move in and re-engineer PTB, mapping production through the Chinese Hamster Ovary (CHO) cell line platform for monoclonal antibodies to drive cost effectiveness.
NBIO followed this up by eventually filing an IND request with the FDA in late 2018, which was granted, allowing clinical research to move forward, but the start of research was delayed due to the onset of the pandemic.
Research got into full swing in March 2021, and NBIO was subsequently given permission by the FDA to enter human clinical trials for Primary and Metastatic Brain cancer.
Building the Story
Nascent Biotech Inc. (OTCMKTS:NBIO) has continued to build its story on the IP side in recent announcements.
The company most recently announced that the United States Patent and Trademark Office (the USPTO) issued patent No. 11,492,394 on November 8, 2022, for claims related to the Company’s lead candidate Pritumumab.
According to the company’s release, the allowed patent, which is titled, “KITS AND CONTAINERS FOR TREATING VIMENTIN EXPRESSING TUMORS” , provides broad protection for Pritumumab and the storage conditions related to its use in clinical applications.
“This issuance strengthens our growing IP portfolio in our brain cancer treatment using Pritumumab, a unique natural antibody that crosses the blood brain barrier,” said Sean Carrick, CEO of Nascent. “As we conclude our Phase I trial, this patent enhances our milestone achievements of moving the asset forward.”
Selling the Story
IP advances are critical to building tangible value in early-stage biotech pipelines because commercialization is always probabilistic. But advancing the IP portfolio provides a tipping-point element to drive tangible value toward potential acquisition interest.
This is especially important when deal-making in the biotech space is waxing as it is now. According to industry-leading publication Statnews.com, we are facing a coming surge of mergers and acquisitions in biotech. The piece notes that the last surge in biotech acquisitions occurred from 2013-2018. During that period, nearly 25% of the acquisition targets hadn’t ever begun even a phase 2 trial.
That period represented an evolutionary shift toward targeting earlier stage players as take-out targets, which is particularly relevant to NBIO at present and suggests shares of the stock are worth a closer look on any pullbacks.
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