Propanc Biopharma Inc (OTCMKTS:PPCB) has come down tumbling after rallying from the $0.08 level to our initial target of $0.20 and generating significant returns in the process. After the meteoric rise in early September, the stock is yet again the subject of increased short selling pressure.
Propanc Biopharma Price Analysis
However, the sell-off wave appears to be losing momentum, upon hitting key support level at the $0.02 mark. While the stock is still flirting with all-time lows, it has started showing signs of bottoming out. High turnover in trading in shares in recent sessions continues to support upward movements from the key support level.
Propanc Biopharma, however, remains susceptible to further declines below the $0.06 mark. After the recent surge, the stock faces immediate resistance at the $0.06 level. A rally followed by a close above the critical resistance level should open the door for the stock to make a run for the $0.12 mark, the next substantial resistance level.
Amidst the recent bounce back, the stock remains vulnerable to further drops given the underlying downtrend. A sell-off followed by a close below the critical $0.02 support level would fuel a sell-off of the stock back to all-time lows.
What Does Propanc Biopharma Do?
Propanc Biopharma bills itself as a development stage, health care company focused on the development of cancer treatments. Its lead product is PRP a formulation that is in pre-clinical trials designed to enhance anti-cancer effects.
Propanc Biopharma has started showing signs of bottoming out after reaffirming its long-term prospects on a string of positive updates. For starters, the company is fresh from reaffirming plans to transition its lead technology into human clinical trials.
The biopharmaceutical company has since engaged the services of LaVoieHealthScience. The integrated investor and public relations agency is to develop a corporate awareness of Propanc Biopharma as a health science innovator.
“As we move closer to the clinical trials stage, it’s critically important to build the right reputation amongst key stakeholders. LHS, with its proven track record in providing integrated communications to global health science innovators, will be a great long-term partner as we continue to drive PRP forward with our drug discovery efforts,” said CEO James Nathanielsz.
Strengthening Intellectual Property Portfolio
In addition to the LaVoieHealthScience deal, Propanc Biopharma has initiated European validation of its lead patent, as it targets major commercial markets in Europe. The company is seeking validation for its lead patent that describes a pharmaceutical composition for treating various cancers.
Patent validation in Europe is part of the company’s push to strengthen the value of its Intellectual patent Portfolio. The development stage health care company has already entered into a national phase with other patents.
Jaen University Collaboration
In addition to growing the patent portfolio, the company has also initiated the next phase of its PRP 1 drug discovery program with the University of Jaen. The goal is to synthesize and develop a backup clinical compound to be used in the treatment of solid tumors.
Under the terms of the deal, the biopharmaceutical company is to collaborate with the University of Jaen on the identification of back up clinical compound to PRP. The two are also to work on the validation of the anti-carcinogenic properties through in vitro testing. Plans are also underway to produce the new synthetic drug candidate in compliance with FDA’s good manufacturing practice in human trials.
“Our vision is to establish a new therapeutic drug class for the treatment and prevention of metastatic cancer, by targeting and eradicating cancer stem cells. We look forward to executing this important project with Dr. Peron and the Department of Health Sciences at the University of Jaen,” said Mr. Nathanielsz.
Wild price swings have seen Propanc Biopharma trade in a broad trading range of between $0.03 and $0.24. While the stock has underperformed for the better part of the year in the market, its underlying fundamentals have continued to improve by the day.
The company has continued to strengthen its intellectual property portfolio, a key to generating long-term value. In addition, the company has made significant strides in the development of its formulations that are currently in pre-clinical trials for the treatment of various types of cancer.
The developments support the company’s long-term growth metrics despite the underperformance in the stock. That said the stock looks like an interesting pick at current lows as a long-term investment.
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Disclosure: We have no position in PPCB and have not been compensated for this article.