Nascent Biotech Inc. (OTCMKTS:NBIO) is a clinical stage biopharmaceutical company with a number of potential drivers and catalysts in play. Today, we take a look at recent analysis and company-specific factors, as well as the macro context, to provide a detailed examination of the stock and its prospects.
From a bird’s eye view, the company’s strategy is heavy on R&D, with a focus centered on developing monoclonal antibodies (mAbs) for cancer treatments. NBIO’s top asset is Pritumumab, which targets brain, lung, breast, and pancreatic cancer.
If you simply strip everything out and just say, ‘what’s this company worth just based on Pritumumab’s prospects in the brain cancer market?’, you still get to a place that suggests this stock may be highly undervalued at present levels if its flagship asset is on a path to commercialization.
To establish a valuation analysis, we have to look at total addressable market (“TAM”). In the oncology space, those numbers are big. According to analysts, the company’s approach is targeting a marketplace that is set to grow to over $4 billion over the next 15 years.
Also note that, in this analysis, we are speculating around the corner in a manner that presumes the series of positive trial results for Pritumumab in terms of safety and efficacy. Only after those hurdles are surpassed will investors start to taste the fruit of commercialization in a huge TAM context. That said, this ‘fruit in potentia’ is sweet enough to potentially warrant some excitement even at this stage.
This is true even without noting that Pritumumab is also the focus of a collaboration now between NBIO, Syracuse University, and Manhattan BioSolutions to develop a potential vaccine targeting Covid-19 and other viral infections.
Under the Hood
As discussed above, Nascent Biotech Inc. (OTCMKTS:NBIO) will be a story largely tethered to its flagship mAb oncology drug candidate, Pritumumab, which is targeted at CNS gliomas (brain cancer), but other cancers share a common molecular target, vimentin, and NBIO aims to assign other cancer treatment indications to Pritumumab as a result. Pritumumab is a “fully natural human IgG antibody” that is intended to treat epithelial cancers (which include lung, breast, colon, brain, and pancreas).
Pritumumab works by attaching to a molecule called “ectodomain vimentin”, which inhabits the exterior surface of tumor cells. The mAb then stimulates immune responses (anti-idiotype, apoptosis, antibody-dependent cellular cytotoxicity, and complement-dependent cytotoxicity) to attack the cancer cells.
The FDA has progressed with the company’s Investigational New Drug (IND) application, allowing NBIO to set up for a phase 1 clinical trial. Once the application is approved, the company will likely move immediately to kick off that trial. A successful course of trials will, in theory, eventually allow the company to bring the drug to market where it will have little in the way of serious competition given the poor outcomes currently defining the brain cancer treatment context.
Aside from Pritumumab, NBIO has other drug candidates (CLNH5 and its MultiPharm platform) also targeting the oncology market.
The Path Ahead
The future could be littered with interesting catalysts for Nascent Biotech Inc. (OTCMKTS:NBIO). We would point out the start of Pritumumab phase 1 human trials as a major catalyst that will force some discounting of future commercial potential, which should impact pricing of shares.
That will begin a road of catalysts as indications start to develop about its safety and efficacy.
We would also not discount the fact that the company has attracted major university partners to study the potential for Pritumumab to function as a Covid-19 resource, and developments related to that process could still emerge.
Then there’s the likelihood of movement on the EU regulatory front and eventually potential commercialization as well as movement toward trials involving Pritumumab as a treatment for other cancers, including lung, breast, colon, and pancreas.
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