Q BioMed Inc (OTCMKTS:QBIO) underperformance over the past one year is a point of concern. The stock is currently languishing at all-time lows and in dire need of new catalysts if it is to bottom out.A pipeline of assets advancing towards major milestones and a clean balance sheet are some of the factors that we believe could reinvigorate investors’ confidence in the stock at current lows.However, the stock has dropped to the $3 a share handle needs to close above the $4 a share handle to be considered a bounce back play after the recent sell-off. QBIO Daily ChartTrading volumes have started to pick up, an indication that investors are slowly taking note of the company’s long-term prospects. In our view, the stock remains undervalued at current levels given the milestones achieved, the past year, which have the potential to generate significant value in the years to come.What Does Biomed Do?Q BioMed is a biomedical acceleration and development company that acquires provides and licenses, resources to life sciences and healthcare companies. The company acquires multiple assets over time and across a spectrum of healthcare related products, in a bid to generate organic growth and returns for shareholders.In addition, Q BioMed holds a license for a generic drug of Strontium Chloride, for the treatment of pain associated with metastatic bone cancer and glaucoma.Washington University Agreement Q BioMed has signed a licensing agreement with Washington University for GD-15, a novel biomarker for monitoring glaucoma. The company is to evaluate the feasibility and usability of the technology as a companion diagnostic for its MAN-1 molecule, currently under study for the treatment of glaucoma.
“Having access to a truly innovative technology that compliments ours as a companion diagnostic could greatly enhance the value of the Manning Research MAN-01 technology. We are excited to evaluate this technology and look forward to a new collaborative partnership with a leading institution like Washington University School of Medicine," said Denis Corin, CEO of Q BioMed, Inc.
What the licensing deal means for Q BioMed Glaucoma is one of the leading causes of blindness and affects nearly 100 million people worldwide. Researchers at the Washington University have already identified a marker of damage to cells, which could be used to monitor the progression of the disease with the help of the GD-15 biomarker.The licensing of the Growth Differentiation factor GDF-15 thus positions Q Biomed at the center of a novel treatment that could revolutionize how Glaucoma is treated in future.GD-15 is an attractive biomarker for the treatment of glaucoma with distinct advantages when compared to conventional clinical tests. It has the potential to be a first-in-cases diagnostic test, from which Q Biomed could generate significant value if approved.Strontium Chloride 89 Opportunity Strontium Chloride is another exciting asset, which has the potential to strengthen investor sentiments on Q BioMed this year. The Food and Drug Administration approved drug is currently being used in pain Palliation for breast prostate and lung cancer.Strontium 89 is the only FDA approved generic version and is reimbursable by Medicare and private insurers. In the United States alone, 450,000 individuals diagnosed with breast or prostate cancer develop bone metastases, a common cause of pain that Strontium strives to address.In the recent past, practitioners and caregivers have been encouraged to reexamine the use of opiates for treating patients, amidst addiction concerns. Q BioMed appears to be in the driver's seat to play a bigger role in the $30 million a year pain palliation industry.
“Clinical studies at leading medical centers around the world have demonstrated that patient survivals may be extended using Strontium-89 in combination with other agents. Additional therapeutic indications for Strontium 89 are possible, and we intend to pursue this objective in 2018,” Q BioMed in a statement.
That said, Strontium is an important asset for the company with the potential of diversifying the company’s revenue streams as it embarks on an aggressive commercialization campaign.$5.48 Million Capital Raise Q BioMed has tapped the debt market as it looks to raise additional capital to finance the launch of its non-opioid FDA approved Strontium Chloride 89 USP injection. The biomedical company has closed a public offering of 1.7 million units, consisting of one common share and one warrant for gross proceeds of $5.48 million.Q BioMed Investment Thesis It promises to be a productive year for Q BioMed as it moves to commercialize its flagship asset Strotium89. The $5.8 million capital raise essentially sets up a catalyst-rich year on the revenue generation front.While the stock has been battered a great deal, it is still an exciting pick given the pipeline of assets and the fact that the company is still working to strengthen its portfolio. That said, the stock needs to rise above the $3 a share handle if a long position in the stock is to make any sense as a long-term play.We will be updating our subscribers as soon as we know more. For the latest updates on QBIO, sign up below!Disclosure: We have no position in QBIO and have not been compensated for this article.
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