Revenue Grows, Monetization Focus
NEW YORK, February 14, 2022 - Q BioMed Inc. (OTCQB: QBIO), a biomedical acceleration and development company, focused on licensing, acquiring, and monetizing life science assets, outlines strategic directions and goals for 2022.
From inception our goal has been to identify assets and advance them to a point where they can return value to our shareholders. Over the last 5 years, we have built a pipeline of assets in the biotech space and invested resources in advancing them towards monetization. The focus for 2022 is to monetize the current pipeline and build a platform for future growth. There are 4 areas of focus: commercial product revenue growth, partnerships, joint venture equity value and future development platform.
Strontium89 was a neglected and forgotten drug with great potential in the cancer palliation space, as a result of a world in which opioids were a treatment of choice for those patients unlucky enough to be diagnosed with metastatic cancer in the bone. To our credit, we stayed committed to our belief that Strontium89 was a valuable treatment and focused on advancing that asset from concept to a fully approved, reimbursed commercial product. All of the necessary infrastructure required has been completed, including manufacturing, branding, pharmacovigilance, reporting, federal supply contract, distribution agreements in US and now in several international countries. The last remaining investment is now focused on a sales team to promote the drug both in federal and non-government institutions and clinics. Revenue has started to grow even without a sales force fully deployed. Our recent partnership with a sales organization is in place and once funded, we will be able to capitalize on our in place groundwork. We expect revenues to grow steadily and over the next 12-18 months, the Strontium89 commercial asset will be a profit center.
We are also assessing additional products in nuclear medicine that could compliment our infrastructure and provide additional revenue opportunities.
UTTROSIDE B - Liver Cancer Chemotherapeutic
Along with our developmental partners, we are advancing an innovative treatment for liver cancer, a disease indication that currently has a high unmet need. This molecule was identified in India, traditionally used to treat liver ailments. Subsequent research on that isolated molecule showed very promising data, indicating that the molecule was 10X more cytotoxic, killing cancer cells more effectively, in liver cancer cells lines than the current first line liver cancer chemotherapeutic. Additional data just published will be made available shortly and positively supports the promise and potential efficacy of this drug candidate. We have advanced this from a naturally occurring unsustainable plant product to a commercially viable and scalable synthetic drug candidate. This accomplishment should not be underestimated and now provides a real opportunity to partner this asset with a larger oncology focused institution. This allows us to move towards a return on the investment as well as testing the execution of the model. We expect this asset to contribute to value creation in 2022. Currently, there are only two approved first-line liver cancer therapies. We have received Orphan Drug Designation and we are now preparing to advance this toward clinical partnership.
Joint Venture Value
Our investment in the Mannin Platform is now reaching a major developmental milestone and provides an opportunity to recognize value on our own balance sheet. Our current investment in this platform development is not currently reflected on our balance sheet as an asset, and we are realizing no value for it in terms of shareholder equity. We are working on converting the future economics and royalty-based return into an equity position that we believe will provide an immediate positive on our asset reporting and significantly improve our shareholders’ equity and cap structure. With significant non-dilutive funding expected for the development of this platform not only for the ARDS/Covid Therapeutic but several other indications, we expect the equity ownership to increase in value quite substantially in 2022/23 as these potential drugs advance quite quickly through their milestones this year. The potential markets in the Mannin platform alone could exceed several billion dollars over the next 2 to 3 years.
Mannin Platform Drugs for ARDS, Glaucoma, Kidney Diseases, and others
With the uptake of vaccines for COVID-19 growing, the infection numbers are still soaring around the world due to new variants and communities’ growing apathy and resistance to mandates and social restrictions. Together with Mannin we are pursuing a treatment for acute respiratory distress syndrome, the condition that causes the most severe symptoms in COVID patients usually resulting in hospitalization and death. The treatment is not dependent on targeting any specific viral variant but is virus agnostic, which we believe makes it an invaluable treatment for Corona viruses and other viral diseases like influenza, pneumonia, and any future viral pandemic outbreaks. Therefore, a successful infectious disease application in COVID-19 could position Mannin’s recombinant fusion therapeutic MAN-19 as a potential government stockpile drug. As an indication of the importance of this program, Mannin is one of only a handful of Canadian companies to have received government funding support for the development of this important therapeutic. The drug has successfully passed a proof-of-concept study and is in the final stages of GMP manufacturing to allow for final toxicology studies and then clinical trials slated for early this year. Furthermore, a successful clinical trial with MAN-19 in COVID-19 patients would provide the clinical dataset to quickly support the development of therapeutics for other vascular diseases such as sepsis, acute kidney injury, chronic kidney disease and of course glaucoma. All of these are large markets with significant potential and could result in multiple commercialization or licensing opportunities in the next 3 to 6 months.
Development Platform - Rare Disease Focus
During 2022 we will focus our future development platform on the Rare Disease Space as it will be a seamless extension of our current business. Our liver cancer drug, Uttroside-B,has already received Orphan Drug Designation and we expect to partner this asset in mid-2022. We will grow our development platform through in-licensing or acquisition. We have identified a cutting-edge platform technology that we believe could yield 3 or 4 rare disease indications over the next 12 months with one poised for clinical trial almost immediately. Very large companies like Alexion and others started their pipelines with a platform in rare diseases where competition is non-existent but the demand for solutions, acute.
This platform will also complement our early-stage treatment for young minimally verbal children on the Autism Spectrum. While our immediate focus is on the above-mentioned assets, we are also developing a new drug candidate to treat young children with pediatric minimally verbal autism. The advancement of this program will depend on the availability of funds and resources as we prioritize our clinical development milestones. There is no effective treatment available to help an estimated 250,000 children born with the condition worldwide each year, 20,000 of them in the United States. We are working on a discovery and development program to address this highly unmet need.
Corporate Strategic Goals
Our mission is to solve problems by accelerating the development of important therapies and the availability of those therapies to patients. Since our inception 5 years ago, we have been busy building significant value ranging from blockbuster potential drugs to revenue-producing opportunities. It is disappointing to see the deep pipeline we have in very large markets go unrecognized by the capital market. Each opportunity we are advancing has significant potential in multi-billion-dollar markets. Like all biotech companies, we require capital to advance these assets until value is realized. We believe we are very close to seeing those returns start to come to fruition. We will raise capital to advance on all fronts and make our intended move to the Nasdaq Capital Market. Given our low market cap we are assessing the most beneficial strategy to make that move in the best interest of the company and its shareholders. We have never been more confident in our strategy!
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About Q BioMed Inc.
Q BioMed Inc is a biotech acceleration and commercial-stage company. Q BioMed is focused on licensing and acquiring undervalued biomedical assets in the healthcare sector. Q BioMed provides these target assets the strategic resources, developmental support, and expansion capital needed to ensure they meet their developmental potential, enabling them to provide products to patients in need.
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition, and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law.
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