Riding The Cantabio Pharmaceuticals Inc (OTCMKTS:CTBO) Roller Coaster

Cantabio Pharmaceuticals Inc (OTCMKTS:CTBO) has taken investors on one heck of a ride. It's been a great one for traders with huge swings and plenty of liquidity. This comes as the company is the subject of a major league promotion from The Bioscience Report with a $150k weekly budget. The newsletter put a long-term price target of $22.75 on the company and no doubt that's gotten investors excited.We profiled Cantabio last month as possibly being the next Anavex Life Sciences Corp (NASDAQ:AVXL). Alzheimer's treatment is a hot place to be because there is no known cure or effective treatment for this debilitating disease. The company that cracks the Alzheimer's code will be worth billions and billions of dollars. Both AVXL and CTBO are similar in that both started out as reverse mergers with big promo dollars.Cantabio describes itself as being focused on bringing novel, first in class drug candidates into clinical trials and beyond through the discovery and development of innovative pharmacological chaperone and protein delivery based therapeutics, focusing on protein systems implicated in neurodegenerative disorders, including Alzheimer’s and Parkinson’s, and oxidative stress. Cantabio’s strategy combines therapeutic focus, target family biophysics, drug discovery technology and expertise into an innovative drug discovery approach and its current main focus is on identifying and developing small molecule pharmacological chaperones for clinical trials. In addition, the company is developing therapeutic proteins that can pass through the blood-brain barrier to supplement existing levels of proteins, which display loss of function during disease conditions.CTBO was formed last December after the merger with Gardedam Therapeutics Inc. Having completed the merger, Cantabio issued 15.5 million shares of its common stock to the holders of Gardedam common stock. Under the terms of the merger, these shares will be restricted from trading for a period of one year from the closing of the merger. After the close of the merger a total of 27.25 million shares of common stock will be outstanding.The latest news from CTBO is its collaboration with the Neuroscience Research Group at the University of Antioquia in Colombia, to further evaluate the company’s DJ-1 protein-targeting small molecule pharmaceutical chaperone drug candidates in development for the treatment of Parkinson’s disease (PD). The partnership brings together Cantabio’s novel approach and the University of Antioquia’s research excellence on the role of oxidative stress in PD and other neurodegenerative diseases. CEO Gergely Toth said:

"We are privileged to be working with professors Velez-Pardo and Jimenez-Del-Rio and their team. They are leading researchers of oxidative stress signaling mechanisms related to neurodegenerative diseases. Our collaborative research enables us to elucidate the cellular mechanism of action of our pharmaceutical chaperones targeting DJ-1 in more detail. Such insight will provide us a stronger opportunity to translate them into clinical candidates that we hope will improve the prognosis of PD patients. In addition, this relationship underscores our ongoing commitment to working with partners that are at the forefront of science and medicine to continue to develop our exciting portfolio of innovative treatments."

Currently trading with a market cap of $83 million, CTBO is big league promotion that's been flying up and down the charts. In looking at the latest financials, we see zero revenues, a quarterly loss of $301k, $101k in cash, total liabilities of $189k, and a negative stockholder's equity of $88k. Furthermore, conducting Alzheimer's and Parkinson's research is costly and expensive. CTBO will have to raise additional funds and dilute existing shareholders.While CTBO has a great story and there's huge potential in Alzheimer's treatment, the stock has already shown huge swings as a result of the ongoing promotion. We urge investors to trade CTBO and not get left holding the bag when the promo dollars run out. We will be updating Insider Financial as soon as we know more. For continuing coverage on CTBO, sign up for our free newsletter today and get a free ebook as an added bonus!Disclosure: We have no position in CTBO and have not been compensated for this article.