Breathtec Biomedical (BTH:CSE 34 cents / BTHCF:OTCQB)
https://breathtecbiomedical.com/
Shares Outstanding: 47 million (insiders 33%)
I have been quietly following BTH since October when they acquired NASH Pharma. I thought about introducing them in the mid teens last month as I knew a strong promotional group would get behind them in 2019 - but that plan was caught off guard when material news was released January 21st.
The stock ran to 45 cents on that news but has pulled back this past week. One of their trial drugs for liver disease (NASH) produced early results that were "very" statistically significant when compared to Cenicriviroc (CVC) - the key driver in a 2016 acquisition that has future value of $1.7 Billion U.S.
At the time, the CEO of the acquiring company stated "NASH is set to become one of the next epidemic-level chronic diseases we face as a society". Don't be surprised if you have never heard of NASH - I had NO idea what this was prior to researching Nash Pharma (BTH).
https://www.marketwatch.com/story/allergan-to-buy-tobira-therapeutics-in-deal-valued-at-up-to-17-billion-2016-09-20
Small drug (biotech) companies require a LOT of patience and risk tolerance. But they can also have huge paydays. I believe BTH in the 0.20's and 0.30's offers attractive risk/reward given their focus on NASH.
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Nash Pharma is a clinical stage pharmaceutical development company focused on drug repurposing in the areas of non-alcoholic steatohepatitis (NASH), chronic kidney disease (CKD) and inflammatory bowel disease (IBD). Drug repurposing is the process of discovering new therapeutic uses for existing drugs. Repurposing offers several benefits over traditional drug development including a reduction in investment and risk, shorter research periods, and a longer active patent life.
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Normally I am not a fan of microcap biotech companies. They are run by science people who don’t understand public markets, they can be painfully boring, and they often take forever to mature – although the timeline on drug repurposing can be dramatically quicker to market.
But BTH is now “heavily influenced” by Vancouver based Bullrun Capital who have a proven history of knowing how to promote companies (they are very good at corporate communications – along with financing and corporate management).
And most important, January 21st NASH released news that has the potential to eventually drive very substantial growth – and hopefully strong capital gains.
https://breathtecbiomedical.com/2019/01/21/nash-pharmaceuticals-announces-84-reduction-of-fibrosis-by-additional-lead-compound-in-second-pre-clinical-study-for-non-alcoholic-fatty-liver-disease/
At first glance the news wouldn’t mean much as these companies have a hard time “dumbing down” their news - it’s just the nature of their industry. But this quote from the CEO caught my attention – and when I dug deeper into Cenicriviroc, I realized the potential here (reference the September 2016 news below).
"We have now had several studies from multiple independent laboratories, confirming that these two compounds are remarkably active in preclinical models of NASH and in CKD, both of which involve fibrosis. We were also very pleased to see the performance of our compounds against the comparator data of Cenicriviroc, a known anti-fibrotic compound in the same two studies," said Christopher J. Moreau, chief executive officer of Nash Pharmaceuticals. "It is also important to note that Cenicriviroc, itself a repositioned HIV drug from Takeda, was acquired by Allergan from Tobira in 2016 for a total potential consideration of up to $1.695-billion. We are looking forward to advancing these compounds into phase II clinical trials as quickly as possible to establish human efficacy."
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NASH is a severe type of non-alcoholic fatty liver disease (NAFLD), which is characterized by the accumulation of fat in the liver with no other apparent causes. NASH occurs when the accumulation of liver fat is accompanied by inflammation and cellular damage. The inflammation can lead to fibrosis (scarring) of the liver and eventually progress to cirrhosis, portal hypertension, liver cancer and eventual liver failure.
According to Allied Market Research, “Global Opportunity Analysis and Industry Forecast, 2021-2025," the global NASH market was valued at $1.17 Billion in 2017, and is expected to reach $21.4 Billion by 2025, growing at a CAGR of 58.4% from 2021 to 2025. Currently, there are no US FDA approved treatments for NAFLD or NASH.
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September 20, 2016 - Allergan to Acquire Tobira Therapeutics Expanding Global GI R&D Pipeline and Taking a Leading R&D Position in NASH
Acquisition Adds Global Rights to Highly Differentiated Compounds to Treat Multi-Factorial Elements of NASH
>> Cenicriviroc (CVC) First-in-Class Oral CCR2/5 Inhibitor Impacting Inflammation, Fibrosis -
>> NASH Expected to Become Leading Cause of Liver Transplants by 2020
DUBLIN and SAN FRANCISCO, Sept. 20, 2016 /PRNewswire/ -- Allergan plc (NYSE: AGN), a leading global pharmaceutical company, and Tobira Therapeutics, Inc. (NASDAQ: TBRA), a clinical-stage biopharmaceutical company focused on developing and commercializing therapies for non-alcoholic steatohepatitis (NASH) and other liver diseases, today announced that they have entered into a definitive agreement under which Allergan will acquire Tobira for an upfront payment of $28.35 per share, in cash, and up to $49.84 per share in Contingent Value Rights (CVRs) that may be payable based on the successful completion of certain development, regulatory and commercial milestones, for a total potential consideration of up to $1.695 billion.
CEO and President of Allergan. "With the increasing rates of diabetes, obesity and other metabolic conditions in the U.S. and in developed nations globally, NASH is set to become one of the next epidemic-level chronic diseases we face as a society. It is important that we invest in new treatments today so that healthcare systems, providers and patients have treatment options to face this challenge in the coming years."
"With this acquisition, Allergan will now have one of the strongest portfolios of development stage programs for the treatment of NASH, with Cenicriviroc as the cornerstone. We will continue to look for differentiated development-stage assets that can bolster this position and enhance our commitment to innovation in this disease," added Saunders.
BTH (NASH PHARMA) OVERVIEW
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Danny Deadlock / MicroCap.com
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