Q BioMed, Inc
President and CEO: Denis Corin
WSA: Good day from Wall Street, this is Juan Costello, Senior Analyst with the Wall Street Analyzer, joining us today is Denis Corin, the CEO for Q BioMed Incorporated. The company trades on the OTCQB, ticker symbol is QBIO. Thanks for joining us today there Denis.
Denis Corin: Good to be with you again Juan.
WSA: Yeah, certainly and for some of our listeners that didn’t catch our interview last September, can you give us an overview of the company?
Denis Corin: Sure, Q BioMed is a biomedical acceleration and development company and essentially what that means is we’re focused on licensing and acquiring undervalued or under recognized, under appreciated biomedical assets in the biotech space or in the healthcare space. And we are dedicated to bringing those assets the strategic resources, development support or expansion capital that they need to help accelerate the development of whatever asset it is that they’re developing. So really what we’re trying to do is help some of these undervalued, under recognized assets accelerate their development and really accelerate their ability to create value for their stakeholders ultimately for the Q BioMed shareholders and our stakeholders as well and of course at the end of the day to accelerate the development of important products and drugs for the patients that need them.
WSA: And can you bring us up the speed on some of your recent news there including the SR89 licensing agreement?
Denis Corin: Sure, so you know we still remain a young company but we’ve accomplished a lot. We set Q BioMed up in the summer of 2015 and in October we made our first acquisition license agreement with Mannin Research. A small research company with the partnership at Northwestern University for a first in class drug in treatment of glaucoma. So, that was our first deal that we did back in October. We’re very excited about that—that’s a huge blue-sky opportunity with a multibillion dollar market there. There are 60 million people dying blind from glaucoma today. And there have been no new drugs developed in that particular space for the last 20 years.
So, we really like the development possibility there. Everything is going on schedule and on budget and we’re very pleased with the progress that we’ve made in the development of the drug, candidates getting them prepared for clinical trials sometime next year. So, that program is going very well. We’re very pleased with the developments there and about six or seven weeks ago we announced that we had entered into a definitive agreement with another company in the United States for the exclusive license and ultimate option to acquire an FDA approved drug. And we just announced last week that we’ve closed this transaction and we’re tremendously excited about having an FDA approved asset in our pipeline that kind of bookends our pipeline from the early stage glaucoma drug to an FDA approved and revenue ready asset in the new drug that we’ve just licensed.
So, we’re tremendously excited to have this additional asset, the revenue generator in our pipeline and we think that significantly de-risks our business plan and our company to have a revenue ready, revenue generating asset in the pipeline. We expect to be able to start to generate revenue from that drug within the next 12 months once we’ve ramped up the manufacturing and the marketing and sales strategies. So we’re tremendously excited about that. We think that separates us quite significantly from the majority of the other biotech or small cap biotech companies in the space that are traditionally sort of money spenders or money burners as opposed to revenue makers. And we think that works very well for the company as a whole and de-risks certainly the investment in our business plan.
The Sr89 drug itself is a generic version of a branded drug that’s called Strontium-89. This is indicated and approved for the treatment of metastatic bone cancer pain. It’s a spoliation drug that has been shown to be extremely effective in reducing the excruciating pain that goes with the onset of bone cancer as metastatic disease from forming tumors either in the breast or prostrate. It’s an excruciating way to succumb to this disease and we’re very excited about bringing this product to market and hopefully making it widely available as well as more affordable to the patients that need it.
WSA: Certainly, and so what are some of the factors that you feel make Q BioMed unique from some of the other players in the sector and well positioned to capitalize on some of the key market trends?
Denis Corin: As I mentioned, I think the thing that’s going to separate us here is the effect that we have a diverse portfolio and we’re going to be growing that portfolio. So we’re going to have multiple assets in multiple therapeutic areas. We’re not just reliant on one specific sector within the biotechnology or pharma space. So having multiple assets and multiple therapeutic areas all maturing at different times, my goal is to have a pipeline of drugs that are ranged from really early stage all the way through to revenue producing. So, there is consistent turnover and milestones as well as of course having a revenue producer in there to sort of feed capital back into the business. It’s going to be extremely important, and I think that separates us quite substantially.
It de-risks the investment if you like in Q BioMed. It de-risks our business model to a certain degree. I’m not saying we will be profitable right out of the gate, but certainly as we grow into the revenue and expand the revenue opportunities that we have, it certainly de-risks the business, which I think is a really nice thing to have in the biotech space. It’s really unusual and we’ll have a descent amount of measurable milestones over the next several months as we bring this direct to market structure menu, manufacturing arrangements, distribution and ultimately stuff that generate sales. So, investors will have something pretty exciting from the core to and follow along as we reach out to meet those milestones not only with the revenue producer, but also advancing the development of our other asset in the glaucoma space towards the clinic and seeing the evaluation of that shift as we get that closer to some point of inflection.
WSA: Well, good and what are the other key goals or milestones that you’re hoping to accomplish here over the course of the next year?
Denis Corin: Well, from a corporate standpoint I would like to grow our pipeline by one or two more drugs over the next 12 months or so. Our objective is also to graduate from the OTC to a major exchange like the NASDAQ, sometimes in the first half of next year. And we think that we’re well on track to do that. Our shares have been trading really nicely and we’re approaching that share price that would allow us to make that step up, add some capital to the tow here as well to help us execute on all of the milestones that I’ve outlined. And we think we’re setup for a really exciting sort of year ahead of us as we bring a drug to market to generate revenues and advance our glaucoma asset and possible even have an additional one or two assets that we really like in the pipeline and intellectual property portfolios as we move into 2017 and beyond.
WSA: Certainly, so as far as investors and the financial community are concerned Denis as you mentioned that you’re hoping to uplist, what are some of your key drivers that you wish were better understood by the financial community?
Denis Corin: Well, I think I’ve laid out a fairly comprehensive plan and strategy here. I think we’re differentiated quite significantly from most of the biotech’s that are sort of great product focused or single product focused. We give investors the opportunity here to participate in the growth and the sort of milestone achievement of multiple assets across a broad spectrum where typically they might be stuck in one particular area waiting for a binary event like an FDA approval on one particular drug. That’s the centerpiece of other biotech companies. So, I think we give investors the opportunity to participate in multiple areas here that they may never have been able to invest in on their own, and we have a pipeline of – or a basket if you will of biomedical assets that they get to participate in the growth of, as we advance those to evaluation inflection points.
So, I think that’s a nice opportunity for people to participate from a mainstream perspective rather than the first time they hear about it is when one of the big things or big venture capitalist IPO it at a $100, you know offers being,well developed and the majority of that value has been taken up by those larger institutions. So, this is really a great opportunity for the mainstream investor or the value investor to take a shot at the biotech space with a young company that’s got a great valuation, but some really significant upside to it. And we think it works really well and gives the investors a great opportunity to come along for the ride with us.
WSA: And perhaps you can walk us through your background experience Denis and talk a little bit more about the key management team there?
Denis Corin: Sure, well you know as a management team we put together this company really around the relationships that we have in the biotech space. I grew up in the pharmaceutical industries from big pharma’s through medical devices, automation and then got into this sort of more junior cap or midcap biotech space. And over my years I’ve just seen so many of these great innovative technologies really struggle to put the management or the resources, the money, all of those pieces that are required to advance the technology that people struggle to put those together in the right ways.
So what we said is let’s put together our cumulative resources—myself, our legal counsel and sort of a general corporate counsel and my partner in the deal, Bill Rosenstadt. Our analyst Ari Jatwes all have been in the biotech sector for a long time. We’ve worked together for over 10 years and we’ve seen a lot of these deals. A lot of the deal flow, a lot of the technologies. Some of their successes, some of their failures and we said, let’s bring all of that knowledge together and then grow our team with some really deep clinical and scientific advisors like our VP of Product Development, David Laskow-Pooley who has been in the industry for 30 years and then taken drugs all the way from discovery to sort of major revenue producers for big pharma companies like Amersham and GSK and Life technologies et cetera. In addition, through the partnership we have with the Wombat Capital and through them we have a very deep bench of higher profiles, key opinion leaders in multiple therapeutic areas that can in their own specific area help us pick apart specific opportunities or technologies that we really like.
The idea is to bring a very experienced credible management team and scientific team to these biotech assets that don’t necessarily have all of that and help them bring all of those pieces of the puzzle together and accelerate the development through providing that strategic resource whether it’s human capital or money capital. And I think that goes well to help those assets progress in an accelerated fashion as quickly as possible to a major evaluation inflection point for all of the key stakeholders.
WSA: Certainly and once again joining us today is Denis Corin, CEO for Q BioMed Incorporated, which trades on the OTCQB, ticker symbol QBIO. Currently trading at $3.15 a share, market cap is about $28 million and before we conclude here, to recap some of your key points Denis, why do you believe investors should consider the company as a good investment opportunity today?
Denis Corin: Well we’re a young company, we’ve only been growing for a little over a year now, but in that short year we’ve – I think accomplished a tremendous amount via two tremendous technology or external technology acquisition license agreements. One in the glaucoma space, which is a massive blue-sky, multibillion dollar market, slightly earlier stage opportunity that we think in the next year and a half to two years the valuation of that would be significantly increased as we progress towards the clinic and proof of concept. And just as importantly we’ve just signed a deal for an FDA approved drug that’s going to generate revenue for us certainly within the next 12 months if not sooner and that separates us quite substantially.
I think from a valuation standpoint that $28 to $30 million, a pipeline of certainly, two and possible three or four by the end of next year; high value propositions in our pipeline revenue generating potential uplist to the NASDAQ in the first half of next year. I think these are all spectacular and great value creations for us and our shareholders and we hope people will participate and come along. This is I think an attractive entry point in the sort of $3 mark and we had some of those milestones and begin to generate revenue. I see our valuation appreciating as we hit those milestones and execute on our business model.
WSA: Well, we certainly look forward to continue and track the company’s growth and report on your upcoming progress and we would like to thank you for taking the time to join us today Denis and update our investor audience on Q Bio. It’s always good to have you on.
Denis Corin: Thanks Juan. I appreciate being able to talk to your listeners again.