$Bob's and Jbem's Bitchin' Bios

[Bob Stocks]

PTBI Pick in at average $3.31.....big potential here....Jbem's amazing pick here...this is his DD

PTBI- PlasmaTech Biopharmaceuticals


http://www.plasmatechbio.com/

Here is another stock I found that I think has HUGE potential. The float is very small so it’s hard to trade, but that also causes it to move fast with even the slightest bit of positive news. They have 3 major catalysts this year as well, with a data release in Q2-2015. They already have 2 FDA approved drugs addressing a $2 billion dollar market. Just a year ago, it was trading at almost $30.

In short, they have upcoming catalysts, money in the bank from a recent financing, 2 FDA approved drugs, a pipeline addressing $17 billion dollar markets, and 99% institutional and insider ownership. Due to the small float, this sucker moves with even the slightest buying pressure. I will say, this is not a “trading stock.” The low float just doesn’t give it the liquidity, but when it moves, it goes fast.

Share Price: $3.24

Market Cap: $64 million

Outstanding Shares: 19,998,801

Institutional Ownership: 28%

Oracle Investment Management- 13%

Perceptive Advisors- 6%

Sabby Management- 5%

Deerfield Management- 2%

Soros Fund Management- 1.5%

Insider Ownership: 71%- This is not an error. Insiders own 71% of the company with the Chairman of the Board owning 13,125,024 shares.


With large tutes, including some very well-known investors (George Soros, Sabby, & Deerfield), and huge insider ownership, the float is minuscule. Estimates vary, but from what I have found, the float is less than 2 million.


Float: 1,630,000


Finances: They recently completed a financing in December for 3.5 million shares at $4 and warrants at $5. It currently trading well under the recent offering price and there has not been any negative news. They also did a private placement with another large institution, Knoll Capital on 4/2/15 for 1,666,667 shares @ $3.


Upcoming Catalysts:

Commercial Launch of Mugard sometime in 2015. This has already been FDA approved and distribution agreements have already been made. Addresses a $2 billion dollar market.

SDF Alpha Data release 1H 2015- This is a more efficient method of extracting plasma from blood. This product is likely to be FDA approved in 2016/2017 and addresses a $15 billion dollar market.


SDF Validation, characterization, and IND filing 2015


Pipeline:

They already have 2 FDA approved drugs: MuGard for oral Mucositis and Proctigard for Radiation Proctitis. The market opportunity for these two drugs alone is $2 billion. Any sales figures or launches will create a nice bump. Even the smallest catalysts produce significant moves because of the low float.

MuGard™ is a viscous, mucoadhesive rinse which provides a protective coating to the oral mucosa. MuGard has received marketing allowance in the United States under a 510(k) from the Food and Drug Administration, and a CE Mark in Europe. The approved indication for MuGard in the US is “the management of oral mucositis/stomatitis (that may be caused by radiotherapy and/or chemotherapy) and all types of oral wounds (mouth sores and injuries), including aphthous ulcers/canker sores and traumatic ulcers, such as those caused by oral surgery or ill-fitting dentures or braces”.

ProctiGard™ is a treatment for rectal mucositis, a debilitating oncology side effect. ProctiGard received 510(K) FDA clearance in July 2014. Access currently holds global commercialization rights for ProctiGard.

Plasma-derived Therapeutics

Plasma biologics are bio-pharmaceutical proteins extracted, purified, and formulated from human blood plasma by the use of biotechnological processing techniques including precipitation, diafiltration, affinity chromatography, and ion-exchange chromatography. These products are rendered virus-safe by means of chemical treatment, nanofiltration, and pasteurization. The US Food and Drug Administration (“FDA”) exercises rigorous control of plasma collection to assure its safety.

PlasmaTech utilizes its Optimized Plasma Process™ (OPP) – a patented method short two-step optimized salt precipitation process, in contrast to the highly denaturing Cohn process to extract a wide range of therapeutically useful biologic proteins from human blood plasma. OPP enables the production of unusually high yields of these proteins compared with the Cohn process. Plasma biologics primarily address indications arising from genetic deficiencies which are increasingly being identified by means of newly available rapid and low cost diagnostic genetic tests.


Alpha-1 Antitrypsin (“AAT”): Also known as alpha-1 protease inhibitor (A1PI), is a protease inhibitor that protects tissues from enzymes produced by inflammatory cells, especially neutrophil elastase. Its normal concentration in human plasma is 1.8 to 3.5 grams per liter. The PlasmaTech Process recovers at least 70% of it, about 10 times that currently yielded from the Cohn process. AAT Deficiency is a genetic condition resulting in damage to lung, liver, and pancreatic tissues, with pulmonary emphysema being the most common indication. Approximately 1 in 3,000 Caucasians suffer from the genetic deficiency, with over 150,000 people in North America and Europe living with the deficiency. Treatment involves lifelong weekly injections of AAT of at least 60 mg/Kg of body weight, or about 200 grams per year. Less than 5% of the treatable worldwide population receive AAT therapy.

AAT also exerts immunomodulatory as well as anti-viral and anti-bacterial effects independent of protease inhibition. Administration of AAT in non-deficient individuals may interfere with disease progression in the following conditions: Diabetes (Type 1 and 2), acute myocardial infarction, inflammatory bowel disease, cystic fibrosis, graft vs. host disease, stroke, Alzheimer’s disease, vasculitis, organ transplantation, and multiple sclerosis. The number of new potential therapeutic indications for AAT could create supply problems due to the challenge of producing sufficient quantities using current plasma extraction methods to meet the demand created by the growing number of clinical indications. It is the view within the industry that the supply of AAT (without new indications) is currently nearing capacity. This factor underscores the significant relevance of PlasmaTech’s unique AAT yield increases.

I strongly suggest looking at the corporate presentation. My descriptions here are cursory and a better understanding of their pipeline can be found here.


http://www.plasmatechbio.com/wp-content/uploads/2015/02/PlasmaTech_Corporate_Presentation.pdf


Management:


Scott Schorer: Chief Executive Officer

Scott Schorer is the Chief Executive Officer of PlasmaTech Biopharmaceuticals. He has served over 18 years in a variety of senior management and board positions, including as CEO and President, and has experience in all aspects of operations including research and development, intellectual property, manufacturing, sales and marketing. Additionally, Mr. Schorer has extensive experience as advisor to operating companies, venture capital firms and private equity firms. Previously, he was President, Americas, of Systagenix Wound Management, was President & CEO of Innovative Spinal Technologies, and was Co-Founder, President & CEO of CentriMed.

Harrison Wehner: President & Chief Financial Officer

Mr. Harrison Wehner is PlasmaTech Bio’s President and Chief Financial Officer. Harrison has over 20 years experience in investment banking advising on equity and debt finance and mergers and acquisitions advisory assignments. Previously, Mr. Wehner held various senior banking roles at Canaccord Genuity, CitiGroup, and UBS where he worked on a variety of banking transactions in the healthcare sector, including advisory and transactional experience in the blood fractionation business.

Dr. Nowotnik is the Senior Vice President of Research and Development at PlasmaTech Bio. Nowotnik brings over 40 years experience in pharmaceutical R&D, quality systems, and regulatory affairs to the team. He has served in a senior capacity at top pharma companies, including, Bristol-Myers Squib, Amersham International, Guilford Pharmaceuticals, Tate & Lyle, Aspro-Nicholas.


Also, the Chairman of the Board is Steven Rouhandeh, Chairman and he owns over 13 million shares himself.
Executive Chairman, PlasmaTech Biopharmaceuticals,
Chairman, SCO Capital Partners
previously: Deutsche Bank, Cravath



This stock has huge potential and due to the small float, it has been flying under the radar. The small float makes it hard to flip for pennies, but the potential is much greater than that. The company has solid management, is fully funded, and has a pipeline addressing $17 billion dollar market. 2 FDA approved drugs that will start creating revenue this year. Their Plasma technology will likely be approved by 2016/2017. Also, since this is a method of extraction and by definition not a trial on human subjects, the risk for any adverse “drug” issues is non-existent. The huge insider ownership and institutional interest among some of the best biotech investment firms makes it all the much better.