Rich Pharmaceuticals Inc (OTCMKTS:RCHA) is not in the best of places now. Since its peak of $0.0013 last year, it has been downhill for the stock’s price ever since. However, its management intends to keep working to restore the firm to its glory and boost its price which is threatening to dip below $0.003.
Company Overview
Rich Pharmaceuticals, Inc. was established in August 2010 and its head office is situated in Beverly Hills, California. It is a pharmaceutical company which engages in the development of innovative therapies in oncology, with its initial focus placed on the treatment of blood-related diseases such as Hodgkin’s Lymphoma and Acute Myelocytic Leukemia among others. RCHA is presently in its first of two clinical trial phases which cover the treatment of the ailments mentioned above. The firm’s objective is to increase the life expectancy and quality for patients. RP-323, a product from Rich Pharmaceuticals for the primary development stage is developed for treating both cancer and blood linked ailments by utilizing -evasive outpatient facilities. As a phorbol ester, RP-323 induces apoptosis and/or differentiation in numerous cell lines and primary cells while it also excites protein kinase and moderates activities of numerous downstream cell signaling pathways which includes mitogen-activated protein kinase pathways.
Recent Developments
Back in 2017, the firm announced that it had gone into a collaboration and support agreement to aid Mega Bridge. Inc., a firm which was set to change its name to HypGen, Inc., for $0.1 million and ownership of HypGen common shares.
Ben Chang, Chief Executive Officer of Rich Pharmaceuticals outlined that HypGen would begin work on the treatment for Parkinson’s disease. Management is confident that the information the firm has collected for its treatment protocol for Acute Myelocytic Leukemia (AML) will hold considerable value for HypGen as it advanced through the regulatory procedures.
In line with the agreement, Rich Pharmaceuticals is to receive fifteen million units of HypGen’s common stock. And it plans to pay dividends on no less than five million of these shares to the shareholders at any point where the company finishes the obligatory regulatory and corporate necessities relating to the dividend payment.
Chang added that sharing data whenever possible is a long practice in the biotechnology space as the objective for all players is the same: To save and to prolong productive lives.
Earlier in the same year, the firm publicly reported that it had chosen a location and received investigator’s interest at the Phramongkutklao Hospital situated in Bangkok, Thailand. The firm had engaged CMIC ASIA-Pacific. Limited for their support in carrying out the project and they have already finished the selection of the site at the Hospital. The site has already been cleared.
The two firms are formulating submission packages to deliver to the Hospital’s Internal Review Board (IRB) as well the Food and Drug Administration body in Thailand. This package to be delivered was nearly complete at the time and the company made clear its plans to submit it as soon as possible. At the time, the firm had already acquired product liability insurance and the package was very close to completion.
In collaboration with the Hospital, RCHA plans to carry out research for the treatment of AML in refractory patients in Phase I/II trial. AML is a disease that affects the myeloid line of blood cells, known by the way it infuses the abnormally rapid growth of abnormal white blood cells which then build up in the bone marrow and meddle with the development of normal blood cells. The disease is the most ubiquitous form of acute leukemia which affects adults and its occurrence rises with the patient’s age. Due to this fact, it is anticipated that the occurrence will rise as population rises.
Financial Performance
For 2017, there were no revenues reported a pattern which has become familiar with the firm over the last few years. It is anticipated that in coming years, the company will move out of this growth phase and generate revenues from the sale of its products.
In the same period, total operating expenses fell by 15%, an indicator that the firm may have improved its operational efficiency. As there was no operating income, operating loss for the year was recorded at $0.95 million. It should be noted that it is a regular trend for developing companies to be unable to generate revenues while still incurring costs in the growth years.
Net loss for the year was $3.2 million, a drop from the prior year loss of $1.77 million revealing that the income statement consisted mostly of its operating expenses for the year.
The statement of financial position reveals that the firm is very highly geared. On its books, its total debt is worth just $5.38 million, resulting in a high debt-to-equity ratio. Worryingly, it has a very low liquidity ratio of 0.009
Conclusion
RCHA has a market for its products and this is evident, however, there is a need to turn this market into actual buyers.
Disclosure: We have no position in RCHA and have not been compensated for this article.
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