OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP), a biopharmaceutical company making strides in the $7.1 billion prostate cancer treatment space, has continued to show very strong action on the charts so far in 2017, up more than 100% in a little over five weeks of action. We have been closely watching the company this year, and can offer some perspective on this action.
As far as recent catalysts, the company just announced that its abstract illustrating research on its novel therapeutic cancer vaccine has been accepted for a poster presentation at the American Association for Cancer Research Annual Meeting 2017 in Washington, D.C. As noted in their recent release, “The technology being presented at AACR serves as the foundation for ProscaVax, the Company’s novel therapeutic cancer vaccine currently in a Phase 1 clinical trial funded in part by the Department of Defense, with a Phase 2 trial planned at a prominent cancer research university in the Northeast U.S. and a Phase 2/3 nearing enrollment in Mexico through a Joint Venture with the Company’s acquisition target Vitel Laboratorios S.A. de C.V.”.
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.
We continue to believe that it makes sense to view this company as a potential takeover target by one of the larger players 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. The short list includes the likes of Seattle Genetics, Inc. (NASDAQ:SGEN), Inovio Pharmaceuticals (NASDAQ:INO), Nymox Pharmaceutical Corporation (NASDAQ:NYMX).
The company’s press release surrounding their upcoming exposure at the American Association for Cancer Research Annual Meeting 2017 is enlightening.
As noted in the release, Dr. Jonathan Head, Chief Executive Officer at OncBioMune, will be presenting the abstract titled, “Inhibition of 4T1 mammary tumor growth in BALB/c mice by subcutaneous and intraperitoneal injection of a 4T1 whole cell vaccine containing IL-2 and GM-CSF as adjuvants” as part of the Immunology Session at AACR on Monday, April 3, 2017 from 8:00 AM – 12:00 PM ET at the Walter E. Washington Convention Center, Halls A-C, Poster Section 28.
“We are delighted to once again be attending one of the world’s leading oncology meetings to present information on ProscaVax and network with peers,” commented Dr. Jonathan Head. “Our poster this year provides compelling evidence about the therapeutic benefit of our vaccine technology in slowing tumor growth in a mouse model of breast cancer and demonstrates the scalability of our platform to address different cancer lines.”
As we generally contend, exposure is a critical piece of the puzzle in defining the value argument for prospective bidders in a verticalizing space such as the prostate cancer field. It’s about getting on someone’s radar.
That said, in its own right, the company has very little in the way of current liabilities on the balance sheet right now, and has research momentum and authorization for a phase II trial, which may position them for strong terms on future funding and go-to-market, thus obviating the need for that type of attention, no doubt, in the eyes of many current shareholders.
That gets us back to the 100%-plus move higher in the stock in recent weeks. Our take is this is likely more about the upcoming phase II trial and its potential to truly put OBMP on the map in the space than it does about early arbitrage odds on a takeout for R&D assets. Management has proven it has a handle on operations at this point.
We haven’t seen any evidence to contradict that thus far, and remain positive on shares.
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