Biotech has the potential to be one of the most exceptional and lucrative sectors of the stock market. After all, how many other industries can claim they are actually saving lives? It’s true, there are other sectors that contain a winning company or two that could achieve up to 10x’s return on investment… but how many can claim the sheer number of individual companies that have such potential? That being said, many biotech companies can become yet another boom and bust story with everything riding on a single new discovery yet to be realized. New York based Biotech firm Q BioMed, Inc (QBIO) is capitalizing on this weakness and beating the odds by diversifying its development portfolio leveraging undervalued Biotech assets early and securing them at a fraction of what their potential upside is which is creating big value for investors. This incubator model is already yielding success with a recent drug commercialization announcement with what appear to be several other promising drugs in the pipeline.
Part of the secret of winning big on Biotech stocks is catching a company early enough in its product development. However, one of the challenges that younger Biotech’s have is the lack of an adequate pipeline of diversified products in the early stages of their development – often times due to lack of financial resources and/or management experience.
In this context, one company unique in its approach is NYC-based Q BioMed, Inc(QBIO), a company leveraging a unique incubator model that provides up and coming private Biotech assets access to public capital and market exposure. For investors, QBIO provides the opportunity to gain access to several early stage biotech growth opportunities through an established public company that they may never have seen or heard about.
Q BioMed, Inc (QBIO) is directly addressing some of the biggest obstacles smaller biotech research teams have by providing funding, executive management, strategic advice and clinical expertise to promising new discoveries while assisting them in navigating the challenging regulatory landscape.
QBIO is just now starting to reveal their asset portfolio and pipeline and investors are starting to take notice. Timing could not be more perfect to get in early and capitalize on the future success of their unique growth model. Below is a list of their top class four assets:
450,000 new breast and prostate cases are recorded each year. 1 in 3 people will develop bone metastases from the spread of breast and prostate cancer. Market Potential for Metastatic Cancer Bone Pain Palliation is Estimated at $60-$80 Million. Having a revenue producing drug in the pipeline only 2 years after starting up is a huge benefit to investors. Very few biotechs can talk about revenue that reduces risk and boosts the bottom line. Almost all are cash burners for decades. In addition, we note that in 2013 Bayer paid over $2.3 Billion for a very similar radiopharmaceutical drug indicated for the treatment of prostate cancer. That drug is expected to reach peak sales of over $1Billion.
The cost for treatment and assisted living in the US alone for these patients can exceed ten million dollars per patient over a lifetime. The estimated cost to the US healthcare system and lost productivity is estimated at 200 billion dollars each. Currently there is no treatment for this disorder. EEG, behavioral, and genetic testing can identify a very targeted population of children in their second year of life that we believe would respond to this treatment.
A search of drugs for a small patient population (often referred to as orphan drugs) like this (20,000) suggests that the average cost of a treatment is likely to be between $100,000 to $200,000 per year. Given the significant cost to the healthcare system and the emotional toll on these children and their support systems, it seems reasonable and in line with comparable drugs. Quick math would then suggest that the market for this drug is in excess of $2Billion a year in the US alone. The numbers are similar in Europe and the rest of the world.
Glaucoma accounts for over 10 million visits to physicians each year. In terms of Social Security benefits, lost income tax revenues, and health care expenditures, the cost to the U.S. government is estimated to be over $1.5 billion annually. Glaucoma patients numbered more than 60 million worldwide in 2012, and the Glaucoma market is currently estimated to be between $4.5 to $5 billion in the U.S., EU, and Japan alone. Glaucoma patients worldwide are estimated to increase by 30% by 2020 reaching nearly 80 million cases. Additionally, Aerie Pharmaceuticals who recently reported Phase 3 testing results has realized a market cap of over $1.8 Billion based on the potential size of the market. When they went public a few years ago their market cap was approximately 150 million. MAN-01 is currently in early testing of a topical eye drop and is the only pending treatment that addresses the major underlying drainage vessel in the eye, that when not fully functional, can cause of pressure in the eye and development of Glaucoma giving Q BioMed significant advantages over other treatment options in development which could spell a HUGE win for Q BioMed.
There are currently approximately 700,0000 diagnoses per year world wide. Currently the only FDA approved drug for the treatment of liver cancer is Sorafenib Tosylate. This produces nearly $1 Billion per year for Bayer who owns the patent for production and distribution of Sorafenib Tosylate and who markets the drug under the name Nexavar. Uttrocide-B has been shown in preclinical studies, increased cytotoxicity on a variety of liver cancer cells by up to 10 times over Sorafenib (Nexavar) providing good reason to be excited about a potential competitor or replacement for Nexavar as the primary treatment option for Liver Cancer.
The strength of Biotech stocks and in particular, the stellar returns of those companies focused on drug markets in need of new treatments, continue to produce tremendous upside for early investors.
PR NEWSWIRE MARKET ALERT (JUNE 8, 2017): Q BioMed, Inc (QBIO) Announces Commercialization of Non-Narcotic Metastatic Cancer Pain Drug.
UPCOMING MILESTONES
With continued milestone achievements, Q BioMed, Inc (QBIO) management is expecting to be uplisted from the OTC to the NASDAQ or NYSE.
Additional expected milestones in 2017 and early 2018 include completion of two INDs (Investigational New Drug Applications to FDA), QMB-001 for the treatment of a rare pediatric non-verbal disease and Uttrocide B for liver cancer. Clinical trials for QBM-001 could start early in 2018. IND enabling studies for MAN-01, intended to treat glaucoma, should start in mid-2018. There are many milestone catalysts ahead for QBIO. This is why we like the vision of the company, to build a diverse pipeline that has consistent catalysts driving value growth for its shareholders.
With the successful commercialization of QBIO’s existing pipeline, and based on the examples of similar companies highlighted above, it would not be unreasonable to see Q BioMed, Inc (QBIO) rewarded for their vision. Similar companies are currently being valued between $2 Billion and $10 Billion. With the existing market cap of QBIO at approximately $40 million, this could mean early investors could see up to a 50 times return on their investment.
Some examples of recent small cap Biotech opportunities whose stock price have already exploded after reaching the stage of drug approvals include the following companies:
GW Pharmaceuticals (NASDAQ:GWPH)
GW Pharmaceuticals develops and markets commercial cannabinoid prescription medication for various conditions. GWPH went public on May 1, 2013 at $8/share and a market valuation of approximately $200,000,000. The company received approval for Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. Currently trading at over $100 a share with a market cap of nearly $3 Billion, this is nearly 15 times return in just 4 short years.
Horizon Pharma (NASDAQ:HZNP)
Horizon Pharma was formed in 2011, is headquartered in Dublin, Ireland and its two lead products are DUEXIS and RAYOS. Following a successful launch of these two products the company has gone on an acquisition spree and now boasts a portfolio of pharmaceutical products that intend to treat arthritis, inflammation, and orphan diseases. It distributes under the following brands: The company has a current market valuation of $2.53 Billion.
Jazz Pharmaceuticals Plc (NASDAQ:JAZZ)
The company was founded in 2003 and is headquartered in Dublin, Ireland. Jazz Pharmaceuticals operates as a specialty biopharmaceutical company, which focuses on the identification, development and commercialization of pharmaceutical products. It has a diverse portfolio of products in the areas of narcolepsy, oncology, pain and psychiatry. Its product portfolio includes: XYREM, ERWINAZETM, PRIALT, intrathecal infusion, FAZACLO and LUVOX CR. It currently holds a market valuation of $9.55 Billion which is nearly a 300 times increase from its low market valuation in 2009 of approximately $33 million.
If you compare a possible $2 billion valuation to the current market cap, this could represent a 5000% return on investment for every dollar invested today, or for an example, approximately $200 a share. In this example, it could mean for every $10,000 invested today an investor could earn $500,000.