Since the last time we touted Q BioMed Inc (OTCMKTS:QBIO)’s exciting pipeline of assets, the stock has tanked to all-time lows and then bounce back, in a classic trend reversal play. A spike in share price in the recent past is already eliciting suggestions that the company has served up the right catalyst, which should continue strengthening investor’s confidence.
Q Biomed Price Action
The stock is currently trading at a critical resistance level, above which it could make a push for this year’s highs. A close above the $3.60 mark, should affirm the emerging uptrend, after months of consolidation amidst soaring short interest pressure.
However, given the underlying long-term bear run, the stock remains susceptible to further declines, on failing to close above the $3.60 mark. Immediate support on any sell-offs is at the $3 a share mark, below which the stock could drop to its 52-week low.
Before we look at the things that have changed from our previous update, let’s first understand what the company does in pursuit of growth and shareholder value.
Q Biomed is a biomedical acceleration company focused on licensing and acquiring biomedical assets across the healthcare spectrum. The company also acquires undervalued biomedical companies with a view to generating long-term value.
Upon acquiring, Q-Biomedical equips the target companies with strategic resources, developmental support and expansion capital to ensure they meet their developmental potential.
A move by Q Biomed to strengthen its prospects on the use of opiates to relieve pain among cancer patients appears to have rubbed investors the right way. The company’s outlook on Wall Street has since received a boost, triggering a buying spree of the stock.
The company boasts of the only FDA approved drug for pain palliation in bone metastases in the name of Strontium-89.
Strontium-89 is a pure beta-emitting radiopharmaceutical. It is currently being used to relieve cancer bone pain in patients with the painful skeletal metastases metastatic bone disease. Being the company’s lead product, efforts are already in place to generate maximum value from it.
Q-Biomed has made a regulatory submission to the Food and Drug Administration for the approval of a new manufacturing facility. If approved, the facility is to be used to manufacture Strontium Chloride Sr89 Injection USP in accordance with cGMP.
The application filling for a new manufacturing facility underscores Q Biomed growing confidence about Strontium prospects. With increasing number of cancer cases, the company remains well positioned to generate significant value as demand for chronic pain-relieving solutions grows. The pain palliation market is worth $300 million annually underscoring the immense opportunities up for grabs.
“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.
Commercialization of Strontium has so far been delayed by unforeseen circumstances one being two major hurricanes that impacted manufacturing and logistical operations in Texas and Florida. However, the company is ready to forge forward as it awaits FDA approval for the proposed new manufacturing facility.
Approval of the new facility would mark a significant milestone allowing Q-Biomed to transition into revenue generating entity.
Q-Biomed entered 2018 on a strong financial footing with a clean balance sheet having settled all its outstanding debt last year. In February, the company closed a $5.48 million public offering on the issuance of 1.7 million units made up of one common share and warrant priced at $3.20 a unit.
Proceeds from the offering provide the company the much needed financial muscle to execute on the launch of its non-opioid FDA approved Strontium Chloride 89 Injection.
In addition, the company is planning to use part of the proceeds to advance clinical planning IND filling for a phase 4 Post-marketing study of SR89 as it looks to expand its indication.
Denis Corin, Q BioMed Inc. CEO said, “This capital sets up a catalyst-rich year for us. We look forward to a productive year ahead as we start to meet the milestones and goals we set ourselves from the founding of the company in 2015.”
What Next For Q Biomed
After spending more than two years in building a valuable portfolio of assets, things are starting to look up for Q Biomed. Approval of Strontium for pain palliation is a development that validates the company’s growth prospects as people turn their attention to non-addictive solutions, amidst the opioid debacle.
A spike in share price in recent weeks is a testament that investors are starting to take note of the fact that the company has a valuable asset on its hands, capable of generating long-term value. After a recent dip in value, an attractive buy opportunity appears to have formed as the commercial stage company moves to market Strontium 89.
That said, Q-Biomed remains well positioned to spike higher as selling pressure loses momentum on growing investor confidence.
Disclosure: We have no position in QBIO and have not been compensated for this article.