Cellular Biomedicine: Delivering on All Fronts

06/30/2015 7:00 am EST

Focus: STOCKS

John McCamant

Editor, Medical Technology Stock Letter

One of our recommended biotech companies has just acquired the rights to an off-the-shelf cancer vaccine, a next generation GVAX, observes biotech expert John McCamant, editor of The Medical Technology Stock Letter.

Cellular Biomedicine (CBMG) bought the vaccine—known as CD40-GVACX—from Blackbird Bio Finance for an initial consideration of $2.5 million in cash and 1.75 million CBMG shares.

The inventor of CD40-GVAX, Scott Antonia, MD, PhD is currently the department chair of thoracic oncology and program leader of the immune-oncology program at the Moffitt Cancer Center.

Dr. Antonia ranks among the foremost experts in the world of immuno-oncology and is an active collaborator with large pharmaceutical companies.

He is recognized as one of the world's leading authorities in the treatment of lung cancer with immune-therapeutics and has recently joined the CBMG Scientific Advisory Board.

Given the positive Phase I results of CD40-GVAX alone in non-small cell lung cancer, Dr. Antonia plans to combine the drug with a checkpoint inhibitor, nivolumab, in a three patient lead-in Phase I clinical trial.

This will be followed by a randomized Phase II clinical trial in the US to evaluate the safety and efficacy of the combination in patients with Stage IV non-small cell lung cancer.

The clinical trails are expected to begin in the second half of 2015. This is a huge market opportunity in China, with 728,552 people diagnosed with lung cancer in 2012.

Meanwhile, the company is running a Phase IIb trails for Rejoin, testing their stem cell therapy in patients with knee osteoarthritis.

Its pre-clinical stem cell data was published in the May edition of the International Journal of Molecular Science.

Data that is published in peer-reviewed journals is one of the primary methods to both validate technology and demonstrate that value has been created.

Cellular Biomedicine continues to deliver on all fronts as they assemble a world-class pipeline that, we believe, is still below Wall Street's radar.

The additional of Dr. Antonia to CBMG's scientific advisory board is a coup for the company and provides further validation for its pipeline.

Overall, the company provides a diversified investment opportunity with an excellent pipeline and a stem cell product line for less than $500 million. The stock is a buy under $40 with a target price of $55.

Subscribe to The Medical Technology Stock Letter here…

More from MoneyShow.com:

Biotech Catalysts

Neurocrine: High Risk and Reward in Biotech

Drug Royalties Boost Ligand

Related Articles on STOCKS