Quest Pharma Tech Inc. (QPT.V) specializes in cancer and cosmetic therapies. QPT.V has five product lines - three for cancer and two for cosmetics.
QPT.V operates through five subsidiaries with different ownership stakes:
Cancer - OncoQuest - 55%, OncoVent - 11%, AmrutBio - 100%
Cosmetic -Mandeco - 80%, Bioceltran - 20%
Of each of the subsidiaries, OncoQuest, OncoVent, and Amrutbio are the primary product lines. However, what sets QPT.V apart is that both OncoQuest and OncoVent are joint ventures with Shenzhen Hepalink Pharmaceutical Co. Ltd, a global company based in China,
In November 2015, Shenzhen (Hepalink USA) made a $13M USD investment via preferred share private placement with Oncoquest. This represents an acquisition of 41% ownership interest in OncoQuest while QPT.V retained 51%. In March 2016, Shenzhen further invested ($6M USD) in QPT.V (through OncoQuest) by creating a new company called OncoVent. OncoVent focuses on research and development of cancer immuno-therapeutic products for the Chinese market. Under the deal, QPT.V retained an 11% interest in OncoVent.
Cancer Therapies
QPT.V's products targets ovarian and pancreatic cancer. Both have very poor prognosis, they are diagnosed in later stages and are not easily detected.
For ovarian cancer, via OncoQuest, the company is working on Oregovomab. The compound is an immuno-therapeutic and used in conjunction with chemotherapy. Oregovomab is currently under clinical trials. In the fall, QPT.V reported positive interim results (Phase 2B) which showed that the compound was more effective in treating cancer patients than using chemotherapy alone. With successful interim results, the company already has Phase 3 clinical trial in its sight. This would require 300 to 400 patients. They plan to start in 2018 and complete by 2021. This effort is estimated at $80M and the company is currently focused on raising the funds.
In fact, QPT.V has already initiated manufacturing the compound with Cytovance Biologics to ensure it has sufficient quantities for Phase 3. In addition, via OncoQuest, QPT.V will present the Oregovomab Phase II Interim Clinical Results at the American Society of Clinical Oncology (ASCO) Annual Meeting t0 be held on Saturday, June 3, 2017.
For pancreatic cancer, QPT.V has three products. One through OncoVent an Anti-MUC1 MAB AR 20.5 and two more (Mab AR9.6 and ACP 2127) which are self-funded. Recently, positive pre-clinical trials were reported using Anti-MUC1 MAb AR20.5 in mice and the company is in the process of manufacturing the compound for upcoming human clinical trials in China.
Cosmetics
Through Mandeco, QPT.V recently launched Belluskin Care (an anti-aging product line) in Canada from Seoul. These are only available via the web and not widely distributed. QPT.V also has minor ownership in Biolcltran.
On May 5th, QPT.V announced that it has made a $500K cash investment to acquire 32% ownership of Natural Rf Life Sciences Inc. The company is led by Dr. Jacqueline Shan, who is the co-creator of COLD-FXâ„¢. which is now part of Valeant. Natural Rf Life specializes in clinically tested natural health products and is currently launching Allergy-Rfâ„¢ in health food stores and pharmacies across Canada.
Summary
QPT.V has strong management and is very well funded for a venture company having a current ratio of 31 (2 is considered good). Last fall, the CEO claimed that the company does not foresee to be in need of funds until April 2018.
Recently stock options were granted at a price of .15 cents. Since the beginning of the year the stock has shown a gradual increase in valuation and is trading at .15 cents with strong support. Given QPT.V's current assets, it is a longer term opportunity that investors should definitely be aware of.
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