Pharmacyte Biotech Inc (OTCMKTS:PMCB) Announces Another Successful Study

In spite of the recent upturn in its fortunes, Pharmacyte Biotech Inc (OTCMKTS:PMCB) still has some work to do. After a major increase in value from $0.03 to $0.08, the firm began showing signs of turning the tide around and has slowly begun to experience success.In the past few weeks, the firm announced the completion of its preparatory work and the commencement of testing by Eurofins and shortly after it returned with news of the success of its 6-month stability study. In this piece, we provide details on the company and the recent announcements that have turned the tide somewhat in its favor.First, take a look at the stock’s price movement: PMCB Daily ChartCompany OverviewPharmaCyte Biotech, Inc. was formed in December 1996 and its head office is located in Laguna Hills, California. Pharmacyte is a medical platform biotechnology company which provides treatments for diabetes and cancer using “Cell-in-a-Box”, an original cellulose-based live cell encapsulation technology. The technology is deployed in the treatment of several forms of cancer such as advanced, inoperable pancreatic cancer and diabetes while the similar technology for other ailments is still being built.For more information, visit our previous post here.Recent DevelopmentsVery recently, the firm reported that the successful completion of a six-month research on the storage of the frozen encapsulated cells essential for the discovery of the “initial shelf life” by Austrianova. This work required removing models of encapsulated cells from 193 Kelvin (K) storage at numerous intermissions up to six months, defrosting the encapsulated cells and testing them for several practical considerations and for sterility.The US FDA, along with other regulatory bodies, mandated that the research is carried out to discover an initial lifespan for a pharmaceutical product before an enhanced stage clinical test can commence. The lifespan can then be extended with additional testing as the merchandise is being utilized during the clinical trial. Austrianova Singapore presently has research information which proves that the lifespan (during storage) for iced up encapsulated cells could be as long as or beyond six years; but, the study was carried out through the use of an alternative cell line rather than those to be used for PharmaCyte’s intended clinical trial. The presently concluded research utilizes the Research Bank of cells to be used in the end product for PharmaCyte’s trial and from which Eurofins has already begun to produce the Master Cell Bank for PharmaCyte.The test results prove, however, that there are no substantial variations in the capability or the enzymatic action of the cells even after defrosting beyond a 6-month storage timeline at 193 Kelvin. These outcomes will allow for a starting lifespan of six months to be marked for the merchandise; extended only after the product has been tested and proven further.Kenneth L. Waggoner, CEO of PharmaCyte’s explained that management was very pleased with the momentous outcome from the study which would enable the firm to apply to the FDA for a starting shell life of six months. This research, one out of many being carried out on the firm’s behalf by Austrianova, is a critical part of the Investigational New Drug Application which is to be submitted to the Food & Drug Administration.The company is also developing an IND to deliver to the Food & Drug Administration so that it can commence a clinical trial comprising locally enhanced, severe, non-metastatic pancreatic cancer and anticipates its submission to be done to IND within the year.Financial PerformanceFor 2017, there no revenues reported, a trend which has continued since its inception in 2014. It is expected that in years to come, the firm will move out of this growth phase and generate revenues from the sale of its products.In the same period, operating expenses fell by 27%, an indicator that the firm may have improved its operational efficiency. As there was no operating income, operating loss for the year was recorded at $4.4 million. It should be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years.Net loss for the year was $4.4 million, a drop from the prior year loss of $6.0 million revealing that the income statement consisted mostly of its operating expenses for the year.The statement of financial position reveals that the firm is not highly geared. On its books, its total debt is worth just $0.58 million, resulting in a low debt-to-equity ratio of 0.07. It also has a very high liquidity ratio of 6.1 ConclusionThe success of PMCB’s recent study is good news and is likely to provoke a positive reaction from the market. Look for the current uptrend to continue.We will be updating our subscribers as soon as we know more. For the latest updates on PMCB, sign up below!Disclosure: We have no position in PMCB and have not been compensated for this article.