Volatility remains the dominant factor across the equities market, with interest rates rising and growth stocks well underwater so far in 2022.
Ground zero for this correction is among “long duration assets”, which includes growth stocks with big hypothetical cash flows down the road but not all that much coming in the door right now. This description fits some of the most exciting names in the market. But the opportunity cost of allocating investment capital to them now, rather than to stocks with big current cash flows or bonds with rising risk-free returns, is higher every day, which drives money out of the growth space and into value and hard assets.
But that won’t always be the case. It’s important to remember that Apple and Google and Amazon were young growth stocks once.
One of the most poignant cases of this type of potential oversight is in the biotech space. Biotechs qualify as long-duration assets in many cases. And they represent some of the most beaten down names in the market right now relative to potential future returns.
With large fund managers now holding nearly 6% cash to AUM, according to Bank of America’s latest Fund Manager Survey, investors may benefit from a close look at some of the top growth opportunities in the Biotech space, including names like Adagio Therapeutics Inc. (Nasdaq:ADGI), Dynavax Technologies Corp. (Nasdaq:DVAX), Pacific Biosciences of California Inc. (Nasdaq:PACB), Cassava Sciences Inc. (Nasdaq:SAVA), Novavax Inc. (Nasdaq:NVAX), Immunogen Inc. (Nasdaq:IMGN), and BioNTech SE ADR (Nasdaq:BNTX).
However, we would also point to a lesser known name with an interesting pipeline asset that could have broad application: Oncotelic Therapeutics Inc. (OTC US:OTLC).
OTLC is a small-cap player that looks like it’s starting to really break onto the scene in both the oncology and virology markets.
The company has developed a first-in-class anti-TGF-β RNA therapeutic, OT-101, that has exhibited single agent activity in relapsed/refractory cancer patients. OT-101 also has shown activity against SARS-CoV-2 and has completed a phase 2 trial against COVID-19, with data analysis in progress. As a Covid asset, it should function agnostic of variants, which is obviously becoming an increasingly important factor.
However, as an oncology treatment, OT-101 is advancing along several paths right now. And the latest one pits it alongside KEYTRUDA, which is one of the most important cancer drugs to emerge over the past two decades.
Oncotelic Therapeutics Inc. (OTC US:OTLC) most recently announced the formation of a Joint Venture with Dragon Overseas Capital Limited. Dragon Overseas is a company affiliated with Golden Mountain Partners, LLC.
“I am excited to announce that, together with our partner Dragon Overseas, we have formed a JV for the discovery, development and commercialization of TGF-β therapeutics against all pharmaceutical indications,” said Dr. Vuong Trieu, CEO and Chairman of Oncotelic. “This JV unburdens the Company of the high cost of drug development, which the JV will be responsible for, while the Company will participate in its upside through appreciation in the value of its shares in the JV.”
According to details released about the deal, Oncotelic will receive up to $50 million on sale of the RPD voucher following marketing approval of OT-101 for DIPG, Dragon Overseas has agreed to invest cash and other assets with a value of approximately $27.6 million for 55% ownership of the JV, and Oncotelic has Licensed OT-101 to the JV for a 45% ownership in the JV.
In addition, the Joint Venture will be headquartered in Hong Kong with an initial focus on the further development and commercialization of OT-101, including for DIPG as well as pancreatic cancers and glioblastoma.
But the deal is actually even broader. In a follow-up letter, Trieu noted that it would pursue “the discovery, development and commercialization TGF-β therapeutics against all pharmaceutical indications.”
One should also note that this deal stands to put a promising pipeline asset on much firmer financial ground:
“This transaction allows us to unburden the Company of the high cost of drug development, which the JV will be responsible for, while the Company will participate in its upside through appreciation in the value of its shares in the JV and up to $50MM on the sale of the RPD voucher following marketing approval of OT-101 for DIPG. Dragon Overseas has agreed to invest cash and other assets with a value of approximately $27.6MM for 55% ownership of the JV; and Oncotelic has granted the License to the JV for 45% ownership in the JV.”
Oncotelic Therapeutics Inc. (OTC US:OTLC) shares have been outperforming the broad market of late, rising about 140% in the past 8 months on rising dollar-based volume measures. The stock is now trading above upward sloped major moving averages.
Disclaimer: This is a paid advertisement. WallStreetPR is simply distributing content provided to us by EDM Media LLC and is not responsible for the production of this content. WallStreetPR is not operated by a licensed broker, a dealer, or a registered investment adviser. It should be expressly understood that under no circumstances does any information published herein represent a recommendation to buy or sell a security. Our reports/releases are commercial advertisements and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The information made available to us by EDM Media LLC is not intended to be, nor does it constitute investment advice or recommendations. The contributors may buy and sell securities before and after any particular article, report, and publication. In no event shall WALLSTREETPR be liable to any member, guest, or third party for any damages of any kind arising out of the use of any content or other material published or made available by WALLSTREETPR ., including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information in this video, article, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. WallStreetPR.com strongly urges you to conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. For some content, Wallstreetpr.com, its authors, contributors, or its agents, may be compensated for preparing research, video graphics, and editorial content. As part of that content, readers, subscribers, and website viewers are expected to read the full disclaimers and financial disclosures statement that can be found on our website by visiting WallStreetPR.com/Disclaimer. WallStreetPR.com has been compensated $500 for advertisement services on OTLC by a 3rd party EDM Media LLC. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions, or future events or performance are not statements of historical fact may be forward-looking statements. Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quotes; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.
Media Contact
Company Name: WallStreetPR
Contact Person: Ash K
Email: Send Email
Phone: 2019725655
Country: United States
Website: https://www.wallstreetpr.com/