After the Dip, is it Time to Rip for Small-Cap Biotechnology? (AMRN, PASO, QBIO, RARX)


The bear has been mauling everything in its path over the past three months. But nothing has been chewed up as bad as the Biotech stocks. And many of these names may now represent potentially remarkable opportunities after the dive.

Here is a quick look at some of the most compelling names in that space: Amarin Corporation plc (NASDAQ:AMRN), Q BioMed Inc. (OTCMKTS:QBIO), Patient Access Solutions Inc. (OTCMKTS:PASO), and Ra Pharmaceuticals Inc (NASDAQ:RARX).

Amarin Corporation plc (NASDAQ:AMRN) trumpets itself as a biopharmaceutical company that focuses on the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States.

The company’s lead product is Vascepa, a prescription-only omega-3 fatty acid capsule, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. It is also involved in developing Vascepa for the treatment of patients with high triglyceride levels who are also on statin therapy for elevated low-density lipoprotein cholesterol levels.

Amarin Corporation plc sells its products principally to wholesalers and specialty pharmacy providers through direct sales force. It has collaboration with Mochida Pharmaceutical Co., Ltd. for the development of EPA-Based drug products and indications.

Shares of the stock have been pulling back after advancing in a monster move last fall following data showing Vascepa could be one of the most important medical discoveries in decades with a market size in the billions in potential terms. The recent pullback may be a major opportunity.

Patient Access Solutions Inc. (OTCMKTS:PASO) was incorporated in 2006 as an innovative technology solution geared toward the healthcare sector.

According to a detailed business plan from the company, PASO has predicated its big-picture strategy on a foundation built of the fundamental recognition that healthcare is the largest industry in the world and that it offers many opportunities to capture data and complete transactions electronically, the company began to apply its technology knowledge in this marketplace. Patient Access Solutions, Inc., as a technology solutions provider, is focused on quality and service within the healthcare community, with an overall focus of using innovative and secure technology to facilitate their client’s needs.

Perhaps most interestingly, the company has opened the C.I.I.T. Medical Center (Center for Integrative and Innovative Therapies) which specializes in chronic health conditions including Autism, Concussion, PTSD and numerous other brain related, and biomedical conditions including Depression, Anxiety, Thyroid conditions and much more. The Center will offer innovative healthcare strategies for children and adults and additionally implement novel and effective strategies of rehabilitation for post-concussion syndrome and like syndromes. Additionally, the Center will be operated with an eye to leveraging each patient to include all their family members for every non-invasive, non-radiation test currently known.

Autism Spectrum Disorder (ASD) is the fastest growing developmental disability and is diagnosed more frequently than AIDS, cancer, and diabetes combined, with 1 in 59 children now being diagnosed (CDC, 2018). With an annual growth rate of 10 – 17 %, this represents a problem of epidemic proportions.

As of November 2012, new legislation took effect mandating insurance coverage for all children with an autism diagnosis up to $45,000/year/child in New York State, where the C.I.I.T. clinic is based. This Center is located in Plainview, New York in a 12,500 square foot facility. Now that this Center is completely up and operational, the company plans to build additional locations on a nationwide basis, encompassing all of the protocols.

In other words, expansion is in the works. Shares of the stock are showing some of the vibes of late. We also heard from the company recently about a lot of short interest piling up. According to a recent release: “For the previous 30 days, 87% of the trades were short sales. Of the 5.1M shares traded over 2M or 35% of the total volume were short sales.”

This is a stock to put on “Squeeze Watch”.

Q BioMed Inc. (OTCMKTS:QBIO), is an interesting player in the small float small-cap biotech growth space that has projects in motion to attack a major growth market (non-verbal learning disorder) with little competition and big potential. And the chart is screaming that smart traders and investors should do some due diligence here – which is why we put in front of you today.

This is a biomedical acceleration and development company that focuses on licensing, acquiring, and providing resources to life sciences and healthcare companies.

The company offers Strontium Chloride SR89, a radiopharmaceutical agent for the treatment of pain associated with metastatic bone cancer. It is also developing Man-01, a pre-clinical lead candidate for the treatment of primary open angle glaucoma. Q BioMed Inc. has a partnership with Sphaera Pharma to develop an analog of QBM-001 for pediatric developmental nonverbal disorder; and a collaborative agreement with SRI International to provide formulation development, preclinical development, and early clinical manufacturing of QBM-001.

The big picture right now for QBIO is a very indicative chart – the stock has been launching ever since we got past the perverse incentivization of the year-end antics, including tax loss selling. Ever since we got to 2019, money has been flowing into QBIO shares.

One reason that might be the case is the company’s move to address the ASD/NVLD growth monster that is impacting society in such an aggressive manner in recent years. One thing is certain: with a market cap of just $27M, this small-cap biotech growth play is worth a look right now, before the train totally leaves the station.

Ra Pharmaceuticals Inc ( NASDAQ:RARX)bills itself as a clinical-stage biopharmaceutical company that develops therapeutics for the treatment of diseases caused by excessive or uncontrolled activation of the complement system in the United States.

The company’s peptide chemistry platform enables the production of synthetic macrocyclic peptides that combine the diversity and specificity of antibodies with the pharmacological properties of small molecules.

Its lead product candidate is RA101495, an injection into the tissue under the skin that has completed Phase II clinical trial for the treatment of paroxysmal nocturnal hemoglobinuria (PNH); and is in Phase II clinical trial for treating patients with generalized myasthenia gravis (gMG), as well as in Phase 1b clinical trial for treating atypical hemolytic uremic syndrome (aHUS) and lupus nephritis (LN).

The product candidate is designed for convenient, once-daily subcutaneous self-administration. Zilucoplan is a synthetic, macrocyclic peptide discovered using Ra Pharma’s powerful proprietary drug discovery technology. The peptide binds complement component 5 (C5) with sub-nanomolar affinity and allosterically inhibits its cleavage into C5a and C5b upon activation of the classical, alternative, or lectin pathways. By binding to a region of C5 corresponding to C5b, zilucoplan is additionally designed to disrupt the interaction between C5b and C6 and prevent assembly of the membrane attack complex. This activity may define an additional, novel mechanism for the inhibition of C5 function.

The company’s preclinical testing products include Factor D inhibition for orphan renal and dense deposit diseases, and C3 glomerulonephritis; Oral C5 inhibitor for PNH, gMG, aHUS, LN, and central nervous system (CNS) diseases; and other complement inhibitors for autoimmune/CNS diseases. It has multi-target collaboration and license agreement with Merck & Co., Inc.

Shares of this stock just broke out to new multi-year highs. With all major moving averages trailing and rising, and a fresh breakout underway, the stock will be on a lot of technical and quant fund radars right now.


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