Time Is Ripe For Vitality Biopharma Inc (OTCMKTS:VBIO) Comeback

Our last look into Vitality Biopharma Inc (OTCMKTS:VBIO) came at a time when their share price was quite consistent and the company was trading at around $1.5. this piece, for the sake of first time readers, can be obtained here. This had, however, changes since with the company experiencing an uptick in their share prices.This didn’t last long.The last ten days have since proven quite rocky for Vitality Biopharma Inc in terms of its share price performance.The company has seen its share price plummet drastically, falling from $2.3 to as low as $1.6 in a period of one week, shaking the company and market to their core.However, the last three days have seen them bounce back from the above stated shock.Their share price is currently trading at $1.92, a 20% jump from the previous low they had reached. This uptick, however, has not been coupled with the increase in traded volumes as is usually the case, instead, the traded volumes have been declining over this period with no single day getting to as high as 100,000 in shares traded.All the above can be seen in this chart: VBIO Daily ChartThis rise and plummeting of prices has necessitated our look into VBIO as we seek to answer the question: what value addition proposition is VBIO bringing to the table and how does it affect their future?A Brief on VBIOVitality Biopharma Inc, previously known as Stevia First Corp, was founded in 2007 and has its headquarters in Los Angeles, California.The company was engaged in the cultivation of stevia, an alternative product for sugar. However, over time, their research team’s advancements led them to transition from their agricultural operations to the pharmaceutical industry.This transition necessitated the name change to Vitality Biopharma.Currently, they have filed for key intellectual property related to the technologies they have developed and is seeking to commercialize them through joint ventures.VBIOs GrowthSince the company’s entry into the research and development space, their main goal has been the development of new drugs and related products that would warrant their stay in the sector.They have been quite successful at the same.Back in October, the company began by filing a patent for their novel drugs. According to the release, the company has over 79 patent claims and almost 200 individual compounds, all which, if approved, will be a solid source of revenue for the company.Moreover, they filed for intellectual property coverage for methods to treat dysbiosis, gastrointestinal infections, and other digestive disorders using cannabinoids.Such successes have been the reason behind their continued approval by the market as well as stay in the industry. This, however, was just the beginning.They have currently made a new discovery: a new class of cannabinoid prodrugs which upon ingestion can be targeted and limited to the gastrointestinal tract, thereby avoiding drug psycho-activity and unforeseen side effects. The drugs, dubbed cannabosides, have exhibited positive results in the treatment of colitis based on the studies carried out.The disease which currently affects over 1.6 million people in the USA alone (the figure including over 80,000 children, has been a medical communities’ headache for quite some time. Moreover, methods of mitigating the pain attributable to the inflammation have also been researched on over quite some time.Vitality Biopharma seems to have solved the puzzle.The company has begun the first-in-man clinical trials for the drugs with the expectation of positive results from the same. Their management are quite optimistic of positive results from the same.In fact, one of their consultant doctors, Dr. David Ziring, commented on the issue stating:

"The prospect of gut-restricted cannabinoids that modulate the local gut immune system but avoid the traditional psychoactive effects of THC is compelling and timely, and could be very well received not only by patients and their families but also by other treating physicians."

Source:All the above were in line with their vision, to be a provider of cannabis solutions to the world. Therefore, the company went ahead to get US DEA for its cannabinoid pharmaceutical research after which they signed a deal to procure manufacturing equipment to enable their compliance with GMP manufacturing.The company reported that as at November 1, they had closed this deal and were ready to continue with their R&D as well as the development and optimization of the novel biosynthesis processes which are currently in use for their cannabinoid pharmaceuticals.The company’s CEO, Robert Brooke, went further to say:

"It's rare for an early-stage drug development company to orchestrate its own manufacturing and GMP production. It enables strict control of our cannaboside products as we enter into clinical testing, and longer-term, helps provide a strong foundation of internal R&D capabilities that we can utilize and continue to build upon."

Source:It is upon this backdrop that we conclude that the company has made a lot of concerted efforts to ensure that they grow to become a dominant player in the industry. Their management seems to have quite some foresight which will go a long way in ensuring that they keep becoming bigger going forward.FinancialsDespite all the above a lot more needs to be done especially on their financial management.The company has constantly recorded losses and this periods loss was similar to the previous period’s. Their current and former quarter’s loss stood at $1.1 million. Moreover, they had negative operating cash flows of about $622,000 which were coupled with a negative working capital position of about $213,000.This alludes to the fact that the company’s financial position may be the reason behind their poor share action. Therefore, it would be prudent for management to take a keen look at their financials and find ways to mitigate some of the positions they are currently in as this will go a long way in ensuring they flourish as they should be doing.ConclusionVBIO has great plans for growth, however, their financials limit this. The company, upon better financial performance, will be a force in the industry. Their vision is quite clear and the fact that they have their eyes on it should send strong signals to the market.For the full story, check out our complete coverage on VBIO.We will be updating our subscribers as soon as we know more. For the latest updates on VBIO, sign up below!Disclosure: We have previously been compensated Seven thousand usd by a non affiliated third party, World Wide Media, LLC for a 2 day awareness program regarding VBIO. This contract has since expired. We have no position in VBIO.