Q BioMed Inc told investors that it has studiously avoided biotech single-asset risks by acquiring multiple assets over time, across a broad spectrum of indications in large markets and its strategy was paying dividends.
The New York-based company has a winner in cancer bone pain drug Strontium89 and a deep pipeline of biomedical assets. The firm noted that it has spent the last six years developing its portfolio to a point where its “value is starting to be realized.”
“The focus for 2022 is to monetize the current pipeline and build a platform for future growth,” said the company.
Q BioMed said it is focusing on four areas: commercial product revenue growth, partnerships, joint venture equity value and future development platform.
The company anticipates that its commercial product Strontium89, used to treat painful metastatic cancer in the bone, will become a profit center.
The company said the necessary infrastructure required to bring it to market has been completed, including manufacturing, branding, 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, noted the company.
Q BioMed revealed that revenue has ramped up even without a sales force fully deployed. “We expect revenues to grow steadily and over the next 12-to-18 months,” it added.
The company said its sales for March, the start of its 2Q, has already exceeded 1Q revenue numbers. Significantly, the company has recently received a $500,000 order for its Strontium Chloride USP injections in China. The firm plans to begin fulfilling the order after the required licenses and logistics are in place.
It added that it is “encouraged” by this growth in the absence of a field sales force, which the company expects to deploy post funding.
Q BioMed said sales for Strontium89 are expected to hit the million-dollar mark this year, touch $3-to-$5 million next year, and $5-to-$7 million in 2024
Mannin joint venture
Q BioMed noted that its technology partner, Mannin Research Inc, is developing a novel therapeutic for patients with Acute Respiratory Distress Syndrome (ARDS). Mannin is also developing a companion diagnostic to detect ARDS in both coronavirus (COVID-19) and non-COVID-19 patients.
Against the backdrop of the global pandemic, Q BioMed said it sees a huge opportunity as the ARDS market is around $50 billion a year.
The firm pointed out that successful clinical safety data in the Phase I clinical program for ARDS will support the development of treatments for glaucoma and kidney diseases which exceeds billions of dollars.
UTTROSIDE B
The company said it is also looking at partnership opportunities to advance its UTTROSIDE B as a liver cancer chemotherapeutic. This molecule was identified in India and has shown promise in killing cancer cells.
“We have advanced this from a naturally occurring unsustainable plant product to a commercially viable and scalable synthetic drug candidate,” noted the company. “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.”
Development platform with rare disease focus
During 2022, Q BioMed said it will target the Rare Disease Space with its Uttroside-B, which has already received Orphan Drug Designation. The company expects to form a partnership in mid-2022.
“Our planned acquisition in this rare disease platform will also complement our early-stage treatment for young minimally verbal children on the Autism Spectrum,” said Q BioMed.
The company revealed that the “siRNA target acquisition” has one Investigational New Drug (IND) ready to “start a clinical trial and dozens more indications to follow.”
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive