The tide is starting to change after a harrowing plunge that saw Pharmacyte Biotech Inc (OTCMKTS: PMCB) shed a significant amount of market value. After a roller-coaster first half of the year, the stock appears to have hit a key support level and showing signs of bottoming out from all-time lows.
Pharmacyte Biotech Price Analysis
A flurry of positive developments, key among them being the signing of a research agreement with the University of Technology Sydney (UTS) continues to reinvigorate the stock’s market sentiments. In addition, the company has strengthened its management hierarchy with the appointment of a cellular expert to oversee medical and scientific programs.
Price action activity indicates that the stock has hit bottom at the $0.03 level and due for a correction higher as a bounce-back play. Above the critical support level, Pharmacyte Biotech looks set to make a run for the $0.04 mark another crucial price action level.
For the stock to turn bullish after the underperformance of the past year, then it needs to rally and take out the $0.05 level, which is a crucial resistance level. Above the $0.05 level, bulls on the fence could come in and continue pushing the stock higher probably back to this year highs of $0.06 a share.
Pharmacyte Biotech bills itself as a clinical-stage biotechnology company, engaged in the development and commercialization of cellular therapies. Developed based on cell encapsulation technology, the cellular therapies target the treatment of various types of cancer as well as diabetes. The company is currently working on therapies for pancreases as well as other solid cancerous tumours.
Focus On Melligen Cells Program
Pharmacyte Biotech is likely to continue its solid performance amidst renewed investor interest in the stock on hitting a critical support level. Underlying fundamentals have also edged higher further affirming the company’s long-term prospects on the development of cellular therapies.
For starters, the company has entered into a research agreement with the University of Technology Sydney. Under the terms of the agreement, the two are to work together on the development of a version of Melligen cells for the treatment of diabetes.
Pharmacyte Biotech has already acquired a worldwide license for the Melligen cells from UTS to develop a therapy for Type 1 and Type 2 diabetes.
“If we are successful, it will bring to fruition the many years of research that have been conducted by Professor Ann Simpson and her colleagues at UTS as well as Pharmacyte in developing these remarkable insulin-producing cells,” stated CEO Kenneth L Waggoner.
The research agreement in Australia comes at a time when Pharmacyte Biotech is overseeing the production of clinical trial material for the treatment non-metastatic, inoperable pancreatic cancer. The company has made significant progress on optimizing the manufacturing process of its Master Cell Bank. The company intends to use the encapsulated cells in a combination of low doses of ifosfamide for the treatment of the inoperable pancreatic cancer.
Cannabis Treatment Development
In addition, the company has, in recent months, expanded its footprint into the cannabis sector. In partnership with the University of Northern Colorado, the company has unveiled a cannabis program for the development of cannabinoid-based chemotherapy.
“We now have a cell line into which the gene for a putative cannabinoid prodrug-activating enzyme has been ‘transfected’ or inserted into the cell’s DNA. The cell line is the same human cell line that will be used in PharmaCyte’s planned clinical trial in locally advanced, inoperable pancreatic cancer (LAPC),” stated Mark L. Rabe, MD, PharmaCyte’s Director of Cannabis Program Development.
While Pharmacyte Biotech is still in the early phase in the development of cellular therapies, it could be a matter of time before it transitions into a revenue-generating entity. The company has made important strides in the development of its product lines, expected to be a key driver of the bottom line going forward.
While the stock has taken a significant hit in recent months, it appears to have hit a bottom and due for a correction higher. Improving underlying fundamentals should continue to support the stock’s price action activity, expected to fuel a rally from current lows.
For penny stock investors seeking opportunities in the biotech space, then Pharmacyte Biotech is an exciting pick as it is currently trading at a discount relative to its long-term prospects.
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Disclosure: We have no position in PMCB and have not been compensated for this article.