Shares of PharmaCyte Biotech Inc (OTCMKTS:PMCB) have gotten vastly oversold and are due for a strong bounce. We've been following PMCB for quite some time and know that the company has a history of testing extremes, both on the low side and the high side. Just like how shares fell off a cliff back in February, only to rally more than 50% a few weeks later. We think the stock is setting itself up for a similar type move again.
PharmaCyte Biotech is a clinical stage biotechnology company developing and preparing to commercialize treatments for cancer and diabetes based upon a proprietary cellulose-based live cell encapsulation technology known as “Cell-in-a-Box.” This technology will be used as a platform upon which treatments for several types of cancer and diabetes are being developed. PharmaCyte’s treatment for cancer involves encapsulating genetically modified human cells that convert an inactive chemotherapy drug into its active or “cancer-killing” form.
In addition to developing a novel treatment for cancer, PharmaCyte is developing a treatment for Type 1 diabetes and insulin-dependent Type 2 diabetes. PharmaCyte plans to encapsulate a human cell line that has been genetically engineered to produce, store and release insulin in response to the levels of blood sugar in the human body. The encapsulation will be done using the Cell-in-a-Box technology.
PharmaCyte plans to commence a Phase 2b clinical trial in the United States, with study sites in Europe, to meet a critical unmet medical need for patients who no longer benefit from the combination chemotherapies of Abraxane + gemcitabine or FOLFIRINOX after 4-6 months of treatment and whose tumors are inoperable and non-metastatic. Currently, chemotherapy + radiation is used for such patients, but this treatment is only marginally effective and carries with it significant side effects. The goal of the trial is to show that PharmaCyte’s pancreatic cancer therapy can serve as a consolidation therapy that is better than the currently used therapy by exhibiting increased antitumor effectiveness and reduced side effects.
The latest news from the company is that a recently published scientific article supports PharmaCyte’s ongoing research efforts that concern medical uses for constituents of Cannabis known as cannabinoids. The article titled “Amyloid proteotoxicity initiates an inflammatory response blocked by cannabinoids” was published in the journal, Aging and Mechanisms of Disease and appeared online on June 23, 2016. CEO Kenneth Waggoner said:
“This research again demonstrates the potential benefit of cannabinoids in treating deadly and debilitating diseases such as cancer and neurodegenerative diseases. Our Cell-in-a-Box live-cell encapsulation technology provides a unique, versatile and natural platform for the delivery of potentially beneficial cannabinoids. It is PharmaCyte’s goal to use the combination of the Cell-in-a-Box technology and cannabinoids or cannabinoid-like compounds to develop effective and safe treatments for some of the deadliest forms of cancer for which such treatments do not presently exist, such as cancer of the pancreas, brain and breast, which affect hundreds of thousands of individuals worldwide every year.”
Last month, PharmaCyte held a discussion session during the annual meeting of the American Society of Clinical Oncology (ASCO) in Chicago. The meeting began with an introductory slide presentation by Mr. Waggoner. This was followed by presentations from Dr. Günzburg and Dr. Salmons that covered the development of the Cell-in-a-Box technology and the properties of the capsules produced using PharmaCyte’s platform technology. Dr. Löhr, who served as the Principal Investigator for the previous 2 clinical trials using PharmaCyte’s pancreatic cancer therapy, presented the results of the previous Phase 1/2 and Phase 2 clinical trials. Dr. Hidalgo then covered the elements of the design of PharmaCyte’s upcoming Phase 2b clinical trial. Following these formal presentations, Dr. Hidalgo facilitated an hour-long discussion in which the invited oncologists discussed the proposed Phase 2b trial and ways to improve its design.
Currently trading with a market cap of $43 million, PMCB has been sliding down the charts as investors await the start of the company's Phase 2b trial. Right now, the company is working on ways to improve its design and taking all necessary steps to ensure its success. Once this trial gets underway, we believe shares of PMCB will be off and running. PMCB has a history of explosive moves and we expect nothing less from this microcap runner. We will be updating Insider Financial as soon as we know more. For continuing coverage on PMCB, sign up for our free newsletter today and get a free ebook as an added bonus!Disclosure: We have no position in PMCB and have not been compensated for this article.
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