Biotech Values

[mcbio]

CRBP > Corbus looks interesting on a number of fronts.. + only $90M mc. I can't find any other programs that target CB2...looks like Resunab could have therapeutic use in a broad range of inflammatory conditions. Not much cash on hand but they have enough to last in 1H 2016... Q burn is only $1.3M.

Corbus is at least on my radar now. And certainly dirt cheap if any hope for their drug. But, a few questions/caveats:

1. They are a true one-trick pony.

2. CEO doesn't appear to have a great track record as his former company (CLTX) is a penny stock.

3. As you noted, not a lot of cash although the $5M award from CFFT helps. I'm almost inclined to wait for them to raise more money though as the next key catalysts (P2 CF/SSc data) don't appear to be until 4Q16 (see slides 14 and 19 of: http://content.stockpr.com/corbuspharma/db/Presentations/1394/pdf/Corbus+Investor+Presentation+4.24.15.pdf ).

4. They are not the only company targeting CB2 generally. See slide 8 of that presentation linked above. While they are the only company targeting inflammation, there are several targeting pain, including big pharmas. Also, what should we make of their statement at the bottom of that slide that the others aren't targeting inflammation because their drugs penetrate the brain? Can we take that at face value? Why couldn't one of the big pharmas listed design a drug similar to CRBP's that doesn't penetrate the brain? Can we take their claim at face value? And why wouldn't penetrating the brain also be an issue in pain settings that all those other companies are otherwise pursuing?

5. While they are going into Phase 2 now, I don't see any links to the Phase 1 data on their Web site. So, I assume they have little or no actual evidence that their drug works in the clinic; I'm assuming all hope for now is simply based on pre-clinical data.