Nascent Biotech Inc. (OTCMKTS:NBIO) is a clinical stage biopharmaceutical company with a number of potential drivers and catalysts in play. Today, we take a look at recent analysis and company-specific factors, as well as the macro context, to provide a detailed examination of the stock and its prospects.
From a bird’s eye view, the company’s strategy is heavy on R&D, with a focus centered on developing monoclonal antibodies (mAbs) for cancer treatments. NBIO’s top asset is Pritumumab, which targets brain, lung, breast, and pancreatic cancer.
If you simply strip everything out and just say, ‘what’s this company worth just based on Pritumumab’s prospects in the brain cancer market?’, you still get to a place that suggests this stock may be highly undervalued at present levels if its flagship asset is on a path to commercialization.
To establish a valuation analysis, we have to look at total addressable market (“TAM”). In the oncology space, those numbers are big. According to analysts, the company’s approach is targeting a marketplace that is set to grow to over $4 billion over the next 15 years.
Also note that, in this analysis, we are speculating around the corner in a manner that presumes the series of positive trial results for Pritumumab in terms of safety and efficacy. Only after those hurdles are surpassed will investors start to taste the fruit of commercialization in a huge TAM context. That said, this ‘fruit in potentia’ is sweet enough to potentially warrant some excitement even at this stage.
This is true even without noting that Pritumumab is also the focus of a collaboration now between NBIO, Syracuse University, and Manhattan BioSolutions to develop a potential vaccine targeting Covid-19 and other viral infections.