Q BioMed Inc (OTCMKTS:QBIO) stock impressed readers in our piece on September 18. We thought it would be a good idea to update that view following as much as 80% in ensuing upward movement. The big new catalyst has been a combination of two forces as we see it: 1. an emerging realization that the risks of a failed deal to close on exclusive rights to its new primary cancer palliative have been quickly fading, and 2. the stock technically broke out of key range on a tiny float.
We’ve witnessed 46% tacked on to share pricing for the company in the past month overall, a move that evidences some deeply encouraging headline flow. This is emblematic of the stock. QBIO has a history of dramatic rallies. Moreover, the listing has seen an influx in interest of late, with the stock’s recent average trading volume running greater than 360% beyond its prior sustained average level It pays to take note of this fact due to the very limited float size in the stock (roughly 5.1M shares). One is wise to respect the dynamic this may create — ramping trading activity can overwhelm available supply in a stock with this type of small float, leading to an upward burst in prices.
Q BioMed Inc (OTCMKTS:QBIO) bills itself as a company that operates as a biomedical acceleration and development company in the United States. The company focuses on licensing, acquiring, and providing resources to life sciences and healthcare companies. Its primary target indication is for a therapeutic eye-drop for the treatment of glaucoma in adults. The company’s lead candidate is MAN-01.
The company was formerly known as ISMO Tech Solutions, Inc. and changed its name to Q BioMed Inc. in July 2015. Q BioMed Inc. was founded in 2013 and is based in New York, New York. QBIO is a biomedical acceleration and development company. The Company is focused on licensing and acquiring biomedical assets across the healthcare spectrum. QBIO is dedicated to providing these target assets the strategic resources, developmental support, and expansion capital the need to ensure they meet their developmental potential, enabling them to provide products to patients in need.
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As noted in our last report, the Company has been angling for an exclusive license and option agreement for all intellectual property related to Strontium Chloride.
This licensed radiopharmaceutical agent is indicated for the treatment of pain associated with metastatic bone cancer. SR89 provides long lasting relief for patients suffering from bone pain due to metastatic cancer, typically caused by advanced-stage breast, prostate or lung cancer. The drug is preferentially absorbed in bone metastases, it has been proven to provide a long-term effect resulting in non-narcotic cancer pain relief and enhanced quality of life. This palliative drug is expected to start generating revenue in less than 12 months.
We felt the deal looked promising, and it would appear the rest of the marketplace is starting to agree with that view. The license agreement finalizes an announcement made by the company in June 2016. A completed agreement would expand current and future revenue estimates and legitimize management and operational expectations.
That also plays into the running action stemming from their initial program with MAN-01, a small molecule designed to treat glaucoma, an eye disease which affects 60mn people globally, and is expected to affect over 100mn people by 2020. The glaucoma market is a $5 billion annual market opportunity, for which no new drugs have been approved in approximately 20 years. The company acquired an exclusive license to MAN-01 from Mannin Research, Inc.
Let’s see in coming weeks if QBIO can continue to impress shareholders. At this time, carrying a capital value in the market of $40.6M, QBIO has a decent store ($162.95k) of cash on the books, alongside total assets just shy of $170K, which must be weighed relative to an appreciable load ($1.05M) of total accumulated debt. The Company’s ability to close this deal and execute for revenues will be the big indication that this is a horse capable of running the race. We don’t have that much to work with yet as far as the longer-term sense of the quality of C-level assets here, but we do know we are working with a strong chart and small float, and likely have some more positive headline flow on the way. We will update this one again soon and be in a position to provide more details as this exciting play develops. For continuing coverage on $QBIO and our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!