OncBioMune Pharmaceuticals Inc (OTCMKTS:OBMP) is in an interesting phase of its existence. The company just solidified its sense of credibility in the space with a recent announcement of a productive meeting with top staffing scientists at the host hospital of the Company’s upcoming Phase 2 trial of ProscaVax for prostate cancer. That represents the first brick in the wall toward some seriously valuable IP.
The company is trading right now at a market cap of just $7.9M, making it practically free for the likes of Eli Lilly and Co (NYSE:LLY), Nymox Pharmaceutical Corporation (NASDAQ:NYMX), or Pfizer Inc. (NYSE:PFE), all of which have been hot on the trail of IP geared toward the prostate cancer market. A price tag under $100M for a viable play into that $7 billion prostate cancer market is a fine starting idea to a conversation among any of these players.
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.
As noted above, there are a number of recent deals in the biotech space that suggest bigger players are currently very much in the hunt for targets that leap them forward in a variety of R&D pathways. Hill-Rom Holdings, Inc. (NYSE:HRC) recently paid $330M for Mortara. We also just saw Celgene Corporation (NASDAQ:CELG) take Anokion off the playing field. In similar fashion, and right up our current alley, Pfizer just scooped up Medivation Inc (NASDAQ:MDVN) primarily for their IP related to the prostate cancer market.
But the space has been more active than that, with additional deals such as Kitov Pharmaceuticals Holdings Ltd (ADR) (NASDAQ:KTOV) moving on TyrNovo, among others. There is something akin to “blood in the water” in the biotech space following the election of Donald Trump. Despite his recent comments about pricing, this is not a Hillary Clinton presidency. We are going to see market-based solutions. And pricing regulations haven’t been this far off the table in a long time.
As such, we would suggest keeping a close eye on OBMP as a potential target. The stock would be a rounding error on the plate of some of the bigger players in the space, and yet this is a company that has begun to build up a store of credibility, in terms of R&D. The company was recently advised by Glenn J. Bubley, M.D. (Associate Professor, Medicine, Harvard Medical School and Director, Genitourinary Medical Oncology, Beth Israel Deaconess Medical Center) that their upcoming study on their pipeline’s lead prostate cancer therapy is a prime candidate for submission to the Cancer Therapy Evaluation Program (CTEP) at the National Cancer Institute. CTEP coordinates the clinical therapeutics development program of the Division of Cancer Treatment and Diagnosis (DCTD) by reviewing clinical trials and evaluating their merits for collaboration and funding. OncBioMune is in the process of preparing documentation for submission and consideration by CTEP.
“We are very encouraged by Dr. Bubley’s suggestion that we take the concept and trial of ProscaVax to CTEP, as it certainly speaks to his confidence in ProscaVax and the valuable potential of the vaccine to meet a large area of unmet medical need in early-stage prostate cancer. Given that there are no drugs approved for prostate cancer at disease presentation, ProscaVax could be of great interest to CTEP,” commented Dr. Jonathan Head, Chief Executive Officer at OncBioMune. “CTEP is a peer-review program that requires a small amount of time and resources on our behalf to potentially help fund and accelerate patient enrolment in our clinical trial. This could be not only a tremendous monetary benefit to our company, but also very advantageous moving forward to have the continued support of government agencies to develop the world’s first prostate cancer treatment that is efficacious and free of side effects compared to current therapies.”
OBMP may be extremely undervalued given the potential for a sub-$100M takeout of its intellectual property assets as the company moves toward further establishing those assets on the $7.1B stage of the prostate cancer treatment market. We would be remiss in our analysis if we additionally failed to note that the stock has a float of under 9.8 million shares. If such a buyout rumor got legs, there is no telling where it might end up.
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