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DanDrit Biotech USA Inc (OTCMKTS:DDRT) Is A Buy On HIV Pipeline Expansion Plans

DanDrit Biotech USA Inc (OTCMKTS:DDRT) Is A Buy On HIV Pipeline Expansion Plans
Written by
Jim Bloom
Published on
February 26, 2018
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DanDrit Biotech USA Inc (OTCMKTS:DDRT) continues to power up the charts at the back of a strong uptrend. In one year, the stock has risen from under a dollar to current trading highs of $6.50. The big question now is whether the stock has what it takes to continue rising after a 600% rally.A close look at the stock’s chart, it is clear that all pullbacks have acted as minor corrections from which the stock has continued to push higher. In our view, the stock still has what it takes to continue powering high, taking into consideration recent developments. DDRT Daily ChartThe stock is closing in on its 52-week high of $7.10, which appears to be the next target on the uptrend. A break of the key resistance level could see the stock registering a new 52 week-high, which would be another record high. On the downside, any sell-off would be limited to the $5.90 handle, which appears to be a key support level.Before we carry out a detailed analysis of the factors driving the stock up the chart, let us first understand what DanDrit Biotech does in pursuit of growth.DanDrit Biotech Business Overview DanDrit Biotech bills itself as a biotechnology company focused on the development of vaccines for the treatment of various types of cancer. The company has developed a number of vaccines that are in multiple stages of clinical trials in Europe and Asia.MelCancerVac is the company’s lead program in Phase I/II trials, for the treatment of cancer. In addition, the company has an agreement in place with Cellini Technologies, for the manufacture of the MCV cancer vaccine and melanoma cell lysate. DanDrit HIV Treatment Ambitions DanDrit stellar start to the New Year has to do with the acquisition of Enochian Biopharma. The acquisition look set, to enhance the company’s research and development efforts.Enochian s is currently developing an innovative proprietary technology in the field of HIV/AIDS. Because of the acquisition, DanDrit now owns a perpetual, royalty-free and license to new technology for the treatment of HIV

"We are excited about DanDrit's future and the further development of Enochian's therapies in conjunction with DanDrit's resources and research capabilities. This acquisition will not only give DanDrit access to new technology, but also bring onboard a team of bright, value-driven, experienced and enthusiastic professionals who are committed to the success of our clinical development programs,” said CEO Eric Leire.

DanDrit Strong Financial Position The biotech company exited the transaction with $19 million in cash, less a $1 million, used in relation to the acquisition. Under the purchase, DanDrit Biotech, Weird Science LLC, and an individual stockholder entered into an Investor Rights Agreement.In addition, DanDrit Biotech has completed a private placement to investors in the U.S, and private investors outside the U.S. The Company issued 1.7 million shares priced at $8 a share. Certain existing shareholders also exercised warrants for the purchase of 2.4 million shares of common stock.The transactions are set to inject more cash into the company’s balance sheet, which should go a long way in financing clinical programs already in progress.DanDrit Research And Development Team DanDrit Biotech has confirmed the appointment of Ambassador Mark Dybul as the Chairman of the board and Steven Deeks as the managing director of its Scientific Advisory Board. The two are renowned experts on the treatment of HIV.

"We are excited about the addition of two renowned experts on the treatment of HIV to our SAB as we prepare to expand our development pipeline into HIV," said Mr. Leire.

The two join Rene Sindlev and Mr. Torben Bjørn Christensen, who joined the board last year as part of a new strategy that has seen the company increase focus on new clinical programs. DanDrit Biotech is looking to develop new therapeutic programs for the treatment of cancer and other serious diseases.Mr. Sindlev and Christensen have helped the biotech company raise additional capital in recent months for the implementation of the new strategy. The company has also recruited top scientific talent for initiating preclinical studies for new biotechnology initiatives.Will DanDrit Biotech Continue Rising?If recent developments are anything to go by, then DanDrit stellar performance in recent months has not come as a fluke. The fact that the company has made important strides in strengthening its research development team affirms its long-term prospects in the development of novel treatments and vaccines.The acquisition of Enochian Biopharma further goes to underscores the company’s commitment in pursuit of growth opportunities around HIV treatments. There is no doubt that the biotech company is on the cusp of something big as it continues to expand its pipeline.The stock can only continue to rise, from current levels, given that everything seems to be working for the company on the Business execution front.We will be updating our subscribers as soon as we know more. For the latest updates on DDRT, sign up below!Disclosure: We have no position in DDRT and have not been compensated for this article.

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