The Value of Q BioMed Supplanting itself in its Niche

Patrick Swanson / January 07,2023
The Value of Q BioMed Supplanting itself in its Niche

The Value of Q BioMed Supplanting itself in its Niche

ATLANTA, GEORGIA, UNITED STATES, January 9, 2023 / — More and more patients are in need of end-of-life care due to the rising prevalence of cancer, and with this comes an increasing number of patients in need of pain management care. As a whole, the global market for cancer pain management was north of $54 billion last year.

Q BioMed Inc. (OTCMKTS: QBIO) is a biomedical acceleration and development company that finds undervalued assets to finance and bring to commercialization. Currently, they have an FDA approved drug in this market, Strontium89 Chloride USP Injections, a generic version of the well known drug, Metastron (which the company also owns), a therapeutic radiopharmaceutical to treat metastatic bone pain in late-stage cancer patients.

As of last year, there are an estimated 330,000 people in the United States are living with bone metastases today. With the 5-year survival rates for these individuals being extremely low, these patients are forced to turn toward palliative care. As for non-opioid alternatives in this space, Strontium89 is the only radiopharmaceutical left on the market that addresses the excruciating pain caused by metastatic disease. Its closest radiopharmaceutical competitor, which is not indicated to treat cancer pain, is Xofigo, which is one of Bayer Aktiengesellschaftâ€The Value of Q BioMed Supplanting itself in its Niches (OTCMKTS: BAYRY), better known as Bayer, largest assets. On a per quarter basis, Xofigo is currently pulling in around $65 million is only indicated to treat prostate cancer.

There is obviously room to propagate in this market, but the market is not recognizing the inherent value of just these two assets, let alone the other products developing in the pipeline. Strontium89 is on a $1.0 million plus run rate, which is more than the market capitalization of Q BioMed, without mentioning future cash flow. Of course, no companies trade one-on-one, but there is obviously value left on the table if a companyâ€The Value of Q BioMed Supplanting itself in its Niches market capitalization is priced lower than its largest asset.

The next step, which management has already alluded to, is to implement a sales force. They need to start penetrating the market, but it is helpful that these drugs are covered by insurance. If Q BioMed gains traction in the market, the Strontium89 arm will provide a sustainable revenue stream to fund other revolutionary pharmaceuticals in its pipeline. For instance, they have a drug in preclinical stages designed to treat liver cancer, and in preclinical studies has shown to be 10x more potent than Sorafenib, branded Nexavar, owned by Bayer. Important to note that the liver cancer market is one of the fastest growing markets with an expected CAGR of 19.5% and forecasted value of nearly $9 billion by 2030.

When we look at barriers for Q BioMed, there really are no directly comparable companies. However, there are organizations, including Akebia Therapeutics, Inc. (Nasdaq: AKBA) and Can-Fite BioPharma Ltd., (Nasdaq: CANF) that correlate but do not access the same patient populations nor manufacture as diverse array of therapeutics as Q BioMed.

If we draw a direct fundamental comparison, then letâ€The Value of Q BioMed Supplanting itself in its Niches look at a company such Ovid Therapeutics Inc. (Nasdaq: OVID) and we can see how Q BioMed is discounted relative to its peer. Identifiably, Q Bio Med currently presents a more favorable earnings per share ratio, price to earnings ratio, and its enterprise value is 10 times that of Ovid Therapeutics, yet one is worth over $100 million and the other is under $1 million.

Q BioMed has done well to target a viable niche in the market but does not have the traction to show for it. Ultimately, if management executes in key areas, especially in boosting sales for Sr89, then that should provide them with strong footholds in this market. Once they have gained traction with customers, then traction in the market should follow suit. Please review links that supports our research within this article.