QBIO - Investors Accumulating Shares of Q BioMed After Analyst Note Points to Anticipated Revenue Expectations
LOS ANGELES, CA / ACCESSWIRE / December 24, 2019 / Shares of Q BioMed (OTCQB:QBIO) have been rising steadily during the last few sessions after former Wall Street Journal All Star Analyst Theodore R. O'Neill, IRC initiated sponsored coverage on the emerging commercial stage biotech developer.
O'Niell has told investors that he expects revenue from its non-opiate based cancer bone pain management product (Metastron™ and its generic, Strontium 89) to begin next year and believes demand will exceed expectations. The company has indicated that it will ultimately generate $25 million to $50 million annually, however we believe it will exceed those expectations.
The firm's plans for the metastatic skeletal cancer palliation drug Strontium 89 Chloride USP Injection (Strontium-89) and the braded version Metastron™- which the firm acquired from GE Healthcare in late 2018- may end up adding exponential value to the company's shares but it has not been a steady run for investors.
Shares of the company had been trading lower after an anticipated FDA Approval of the firm's Strontium-89 contract manufacturer took much longer than anticipated. However, a late November spike in share price and volume marked the day in which the approval announcement finally came, thus clearing the last hurdle to sales of the product. These events have prompted a "buy" recommendation and 12-month price target of $5.00 per share is based on a discounted earnings model from O'Neill.
Since the FDA announcement, shares of the low float innovator have been seeing some quiet accumulation steadily rising from $0.40 per share prior to the approval to approximately $2.00 yesterday when shares traded at seven times the daily average. Technical analysts also note that QBIO shares have also been trading in bullish rounding bottom chart pattern throughout the month of December. Such patterns usually signify a reversal in long-term price movement and are deemed by many traders as a rare occurrence.
QBIO CEO Denis Corin, who cut his teeth working for the sales and marketing divisions at big pharma firms like Novartis and Beckman Coulter, had recognized that Metastron™ was basically being ignored by GE Healthcare as an effective and underutilized non-opioid therapy for the treatment of debilitating pain associated with skeletal cancer metastases. The drug had been on the market for several years, but analysts agree that the global brand which has market authorization in 22 countries has been mostly under marketed and perhaps even under-utilized.
Q BioMed owns both the generic and the brand. Metastron™ and Strontium-89 is a very effective palliation drug franchise, and as opposed to getting multiple doses of opiates- which lead to all sorts of side effects like brain fog and constipation and literally leaving some of these patients in zombie-like states, a single injection of Metastron™ or Strontium Chloride can ameliorate pain for up to six months, effectively reducing or even eliminating the need for opioid analgesics, which practitioners are being asked to re-evaluate the use of, in the shadow of the global opioid crisis.
It is important for QBIO shareholders to understand, that the relatively young biotechnology firm also has a very deep pipeline of significant products and value opportunities with catalysts and milestones within each of those assets as the company prepares to progress into 2020. Currently the firm's market capitalization stands at approximately $30M with 16.7M shares out current and 12.5M shares in the float.
The full sponsored research report from analyst Theodore R. O'Neill, IRC is available at:
http://www.hillsresearch.com/wp-content/uploads/2019/12/QBIO-Initiation-A.pdf
This article including investment thesis images is available at:
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