Nexus Bipharma Inc (OTCMKTS:NEXS) Is Trader's Choice New Pick

One of the keys to being a successful OTC trader is knowing which pumps are going on and by what group. One of the most effective promo groups (in the beginning at least, which we'll get to) is the Trader's Choice group. There were rumors that Nexus Bipharma Inc (OTCMKTS:NEXS) was going to be the next pick for Trader's Choice for months, but the promo didn't get kicked off until last week. No doubt Trader's Choice had to build up a new list after their last pick, XLI Technologies Inc (OTCMKTS:XLIT), crashed.Trader's Choice does have a history of delivering winners to those that get in early and then get out. The key is to not get left holding the bag. Before XLIT, their last pick was Cocrystal Pharma Inc (OTCMKTS:COCP), which went from $.25 to $1.53. XLIT performed even better. Its shares rose from $.14 to $1.50 on the strength of the Trader’s Choice Group, only to then take a dump.First up, a little background on NEXS. Nexus Biopharma describes itself as a preclinical stage biotechnology company developing new therapies and intellectual property from research and development activities for treating obesity and type 2 diabetes. The main target for the company's research is the adenosine monophosphate-activated protein kinase (AMPK) pathway. When activated, results include increased metabolism, reduced fat mass and improved blood chemistry.

In completed pre-clinical trials of the pharmaceutical activation of the AMPK pathway, test subjects showed reduced fat mass with no loss of lean muscle mass, plus a higher rate of energy expenditure, increased insulin sensitivity, increased fatty acid oxidation, improved plasma and tissue triglyceride levels, with lower cholesterol. Upon translation of this pharmaceutical activation to humans, these effects are expected to have a significant impact on treating obesity and diabetes.

The company said when its reverse merger with Plata Resources Inc was completed on June 10th that "using the most advanced high throughput screening technology, the Company has identified small molecule compounds in a number of discrete chemical structure families that can efficiently activate the pathway. The Company has filed for intellectual property protection on a selection of compounds in a number of discrete chemical backbones. The Company's goal is to advance these to pre-IND trials in preparation for FDA human trials of a drug that will safely mimic this effect in humans."

So far, NEXS has been light on press releases. We expect this to change rather quickly. The last we heard from the company was on July 18th. Nexus Biopharma appointed Daniel Einhorn, M.D. to the Company's Scientific & Clinical Advisory Board. Dr. Einhorn is medical director of the Scripps Whittier Diabetes Institute, Clinical Professor of Medicine (voluntary) at UC San Diego, President of Diabetes and Endocrine Associates, and Associate Editor of the Journal of Diabetes. Nexus Bipharma CEO Warren Lau said:

"We are thrilled that Dan is joining our team of advisors. His background and experience will be invaluable as we move our weight loss product candidate into later stage clinical development for treating obesity and type 2 diabetes."

Outside of this press release and the completion of the merger, the only other news from NEXS was the appointment of Jeffrey Pessin, Ph.D. as Chairman of the Company's Scientific Advisory Board. Dr. Pessin is the Judy R. & Alfred A. Rosenberg Professorial Chair in Diabetes Research and Director of the Diabetes Research Center, Department of Medicine at the Albert Einstein College of Medicine. He also serves as Professor in the Departments of Medicine(Endocrinology) and Molecular Pharmacology.Currently trading with a market cap of $30 million, the iHub message board for NEXS is already filled with posters saying they received telephone calls from the folks at Trader's Choice. We urge caution with NEXS and urge investors to trade it and don't get left holding the bag. The good news is that this is promo is in the early stages and we've seen what Trader's Choice picks have done in the past. The only question is are they as powerful as before the XLIT pick? Investors also have to worry about the SEC which has been more aggressive in halting promos like Preston Corp (OTCMKTS:PSNP) in their earlier stages. Keep in mind that the latest financials from NEXS showed ZERO revenues, a loss of $7000, NO cash, and $93000 in total liabilities making it very hard to justify a $30 million market cap. We will be updating our subscribers as soon as we know more. For the latest updates on NEXS, sign up below!Disclosure: We have NO position in NEXS and have NOT been compensated for this article.