Q BioMed Inc (OTCMKTS:QBIO) is eyeing revenues of between $25 million and over $50 million annually within the next three years from the sales of its cancer pain drug, which received clearance for production by the FDA late last year.
"We expect to initiate sales early in Q1 2020. Having a revenue stream will differentiate QBIO from most others in the microcap biotech space," the company said in a shareholder update ahead of the commercial launch of its first drug - Strontium-89.
Since its inception more than four years ago, the biotech has been advancing undervalued biomedical assets, ranging from blockbuster potential drugs to imminent revenue-producing opportunities, and it says it has created significant asset value.
For Strontium-89, the firm has also announced a distribution partnership with Jubilant Radiopharma, allowing access to the whole US market.
"Jubilant operates the second-largest commercial radiopharmacy network in the US, giving us immediate nationwide reach and access to sales teams, ordering, warehousing, inventory management, invoicing and customer service," said Q Biomed.
The group is also planning a Phase 4 clinical trial involving Strontium-89 with the goal of treating metastatic bone cancer, which would potentially generate significantly more in annual revenues.
It pointed out in the shareholder letter that a comparative drug in this therapeutic space was purchased by drugs giant Bayer for $2.9 billion in 2013, with peak sales projected by the pharma titan exceeding $1 billion a year.
Also last year, Q Biomed's partner Mannin Research significantly secured a $7.7 million grant, which will help the firm develop its Glaucoma and vascular disease assets on an expedited timeline, it said.
Last month, Mannin highlighted a potential new treatment for acute kidney injury (AKI) after hypotension, sepsis or cardiovascular events. Q BioMed has been partnered with Mannin since 2015 and has an exclusive option on all its portfolio assets.
In early 2019, Q Biomed exercised an option to license from Washington University, a diagnostic marker known as GDF15, for determining the severity of glaucoma.
A unique opportunity
This product represents a unique opportunity, it says, and current clinical trials are yielding promising results.
Elsewhere, the group has also successfully synthesized a plant-based molecule aimed at treating liver cancer and is preparing to move into a pre-clinical program leading to an investigational new drug (IND) and a proof of concept clinical program.
It is also working to gain orphan drug designation from the FDA for its new drug candidate to treat young children with pediatric minimally verbal autism.
Shares in New York eased 1.10% to $1.80 on the day.
Contact the author at [email protected]