Financial Research and Quantitative Trading Strategies for TSX Venture Investors

QPT.V - An update.

April 3, 2019

Quest Pharma Tech Inc. (QPT.V) specializes in cancer and pharmaceutical therapies. We initiated coverage on May 2017, with subsequent notes on April 2018 and September 2018As a reminder, QPT.V operates now six subsidiaries with different ownership stakes:

 

Cancer - OncoQuest (55%),  OncoVent (11%),  AmrutBio (100%), and OncoCare (45%). 

Pharmaceuticals - Madenco (20%), Bioceltran (20%).

 

Both OncoQuest and OncoVent are joint ventures with Shenzhen Hepalink Pharmaceutical Co. Ltd, a global company based in China. Here's an update.

 

Nov. 28 - Signs License Agreement with OncoCare Therapeutics to Develop and Commercialize Targeted Cancer Therapy Technology in the U.S.

 

Quest's Targeted Cancer Therapy Technology includes two potential treatments, AR 9.6, an antibody licensed from the University of Nebraska Medical Center that binds to and blocks oncogenic activities of MUC16, and ACP-2127 which targets CDK/mTOR receptors "Both candidates are being developed for the treatment of pancreatic cancer, one of the deadliest diseases with, currently, no significant long-term treatment options. " In return for granting the license rights to the U.S., Quest will receive a 45% ownership interest in OncoCare Therapeutics,

 

In other news, the Company announces that it will be holding its annual general meeting of shareholders on Monday, January 28, 2019 at 3:00 pm at the Company's corporate office in Edmonton (8123 Roper Road NW, Edmonton, AB, T6E 6S4.

 

Dec. 3 - Announces Adoption of Shareholder Rights Plan It allows a potential bidder to make a "Permitted Bid" as described below directly to the shareholders of the Company without the prior approval of the Board. It gives shareholders the right to buy more shares at a discount if one shareholder buys a certain percentage or more of the company's shares.

 

The plan could be triggered, for instance, if any one shareholder buys 20% of the company's shares, at which point every shareholder (except the one who possesses 20%) will have the right to buy a new issue of shares at a discount. If every other shareholder is able to buy more shares at a discount, such purchases would dilute the bidder's interest, and the cost of the bid would rise substantially.

 

Dec. 19 - Adopts Amendment to By-laws Requiring Advance Notice of Nomination of Directors. The by-law amendment fixes a deadline by which holders of record of common shares of the Company must submit director nominations to the Company prior to any annual or special meeting of shareholders and sets forth the information that a shareholder must include in the notice to the Company for the notice to be in proper written form in order for any director nominee to be eligible for election at any annual or special meeting of shareholders .

 

The Company also announces the nomination of Ms. Norma Beauchamp as a new director for the Company’s January 28, 2019 annual general and special meeting of shareholders. Ms. Beauchamp is currently a director of several Canadian public companies, including Aurora Cannabis Inc. and Acerus Pharmaceuticals Corporation and the former CEO of Cystic Fibrosis Canada..

 

Jan. 25 - OncoQuest Lays the Groundwork for Commencement of Phase 3 Study in Frontline Ovarian Cancer.  Retained the services of IQVIA, a company formed through the merger of IMS Health and Quintiles, to manage OncoQuest's planned Phase 3 clinical study in frontline ovarian cancer with the company's lead product candidate, oregovomab, an anti-CA-125 antibody.

 

OncoQuest will collaborate with IQVIA, to provide oversight of the day-to-day study execution activities. Also signed a Letter of Authorization with The GOG Foundation, Inc. (GOG) to provide consultation on regulatory strategy, protocol design and additional aspects of the Phase 3 study, and to coordinate participation of GOG-affiliated study sites. The planned Phase 3 study is expected to enroll over 500 patients with newly diagnosed, advanced ovarian cancer globally.

 

Jan. 29 - Announces Results from AGM. Granted 1,25M options to Directors and Officers, all at an exercise price of $0.18 per share for 10 years.

 

QPT.V continues to make progress with both OncoCare (MUC16, and ACP-2127 ; pancreatic cancer) and OncoQuest (Oregovomab; ovarian cancer). Licensing agreement of OncoCare along with the Shareholder Rights Plan were noted by the market causing the stock price to erupt (T1). Similarly, the IQVIA release in preparation of Phase 3 trials of OncoQuest and the results from the AGM announcements lead to similar action (T2).

 

Both series of announcements T1 and T2 represents the culmination of multiple years of research and product development that moves QPT.V close to its goals. Hence, the Shareholders Rights Plan (poison pill) and amendment of the by-laws to prevent hostile take overs are certainly wise.

 

As a reminder, Oregovomab has four trials. A joint US-Italy, two in the US, and another in Singapore. The joint US-Italian trials is the only one completed (December 2017) and had encouraging interim results (November 2016).  To our knowledge, final results on these have not been release yet.  Its also worth noting that all trials have different combinatoric elements with the aim of evaluating multiple use cases and determining maximal effectiveness. Results from this and other trials (interim and final) are expected in the future.

 

As for OncoCare, its a new entity. The focus on pancreatic cancer is like OncoVent with Shenzhen Hepalink Pharmaceutical Co. Ltd in China. 

 

These two initiatives are the most prominent but there are others that QPT.V is working on. A thorough look at their latest MD&A is suggested for more details. Of late the stock has been trading between $0.12 and $0.15 cents with low volume but QPT.V is progressing nicely. 

 

 

 

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.

The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions. 

Please reload

PressPatronLogo.png

If you enjoyed the article, think of becoming a supporter.

You can make a one-time contribution or monthly one.

No amount is too little to help us expand coverage.

Click on the PressPatron button for more details.

Anonymous contributions are accepted.

  • LinkedIn Social Icon
  • Twitter Social Icon

Copyright © 2017-2019 rally. All rights reserved.