Why Generex Biotechnology Corporation (OTCMKTS:GNBT) Shares Just Caught Fire

Why Generex Biotechnology Corporation (OTCMKTS:GNBT) Shares Just Caught Fire


Shares of Generex Biotechnology Corporation (OTCMKTS:GNBT) have been ripping higher over recent days. To further flesh out the story, the company just announced that it has completed the acquisition of 51% of Regentys Corporation, a regenerative medicine company focused on developing novel treatments for patients with gastrointestinal (GI) disorders.

According to the release, “The terms of the deal include the previously reported upfront payment of $400,000, plus $14.6 million to be paid according to a milestone-based schedule. Details of the transaction can be found in the Generex 8K filing with the SEC.”

Generex Biotechnology Corporation (OTCMKTS:GNBT) bills itself as a company that, through its subsidiaries, primarily engages in the administration of formulations of large molecule drugs to the oral cavity using a hand-held aerosol applicator in Canada and the United States.

It offers Generex Oral-lyn, an insulin formulation administered as a fine spray into the oral cavity. The company is also developing AE37, a synthetic peptide vaccine to stimulate a potent and specific immune response against tumors with low levels of expression of the HER-2/neu oncogene in patients with breast cancer and prostate cancer. In addition, it develops, manufactures, and distributes rapid point-of-care in-vitro medical diagnostics for infectious diseases, such as human immunodeficiency virus, tuberculosis, malaria, hepatitis B, hepatitis C, syphilis, and others; and cassette devices.

The company has a collaboration agreement with HydRx Farms Ltd. to co-develop products for the delivery of cannabinoids via the buccal mucosa. Generex Biotechnology Corporation was founded in 1983 and is based in Miramar, Florida.

According to company materials, “Generex Biotechnology Corp. (GNBT) is a biopharmaceutical company focused on developing or acquiring technologies that help pharmaceutical companies discover and develop medicines. Our company creates value for stockholders by providing a diversified portfolio of biotech and pharmaceutical product revenue streams that are supported by an efficient and low corporate cost structure. The company goal is to offer investors an opportunity to participate in the promise of the biotech industry in a profitable, diversified and lower-risk business than a typical biotech company. Our business model is based on doing what we do best: drug discovery, early-stage drug development, product reformulation and partnering. We partner with other pharmaceutical companies to leverage what they do best (late-stage development, regulatory management and commercialization) to ultimately generate our revenue.”

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As noted above, GNBT just announced that it has completed the acquisition of 51% of Regentys Corporation, a regenerative medicine company focused on developing novel treatments for patients with gastrointestinal (GI) disorders.

Recent action has seen 55% piled on for shareholders of the listing during the trailing week. What’s more, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 72% beyond what we have been seeing over the larger time frame.

Joe Moscato, CEO of Generex commented on the acquisition, “The completion of this Regentys acquisition demonstrates our commitment to build a world-class regenerative medicine business by acquiring great companies with cutting-edge, patented technologies and exceptional management teams. Our direct investment in the clinical development of Regentys ECMH will provide long-term value to Generex investors as we achieve milestones on the path to commercialization in the billion dollar markets for ulcerative colitis and other inflammatory bowel diseases.”

Currently trading at a market capitalization of $94.05M, GNBT has a chunk ($2.4M) of cash on the books, which stands against about $42.9M in total current liabilities. One should also note that debt has been growing over recent quarters. GNBT is pulling in trailing 12-month revenues of $2.4M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 77408.9%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $GNBT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $GNBT, either long or short, and we have not been compensated for this article.

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