Monday, November 08, 2021 2:14:25 PM
Derrick Thomas
Written by Derrick Thomas
Posted on November 5, 2021 7 min read
Regen BioPharma Inc. (OTCQB: RGBP) and (OTCQB: RGBPP) is a biotechnology company focusing on the immunology and immunotherapy space. RGBP specializes in small molecule therapies for treating cancer and autoimmune disorders. The company has been the subject of buyout speculation for some time thanks in part to its definitive agreement with Eli Lilly (NYSE:LLY). But more recent news moved RGBP stock up 60% since November 1st.
Catalysts
RGBP has made significant progress since the last article, as it was issued a patent for its “Universal Donor Checkpoint Inhibitor Silenced/Gene Edited Cord Blood Killer Cells” in October. Essentially this patent covers RGBP’s invention of treatments that induce an “anticancer” response in patients. It’s therapeutic use triggers an antitumor immune response from the body which has the potential to be revolutionary for the company.
The company seems to be building on two successful deals with Oncology Pharma from earlier this year as it sets out on the path for commercializing some of its research. In October it gave a Scope of Work order to Biotech Research Group to help the company strategize ways to commercialize its NR2F6 intellectual property. RGBP’s NR2F6 nuclear receptor was identified as a potential immune cell inhibitor that can help trigger the immune system to fight cancer as well as autoimmunity diseases and chronic inflammation.
This is the same group hired by RGBP in May to revive its inactive INDs granted in 2015 by the FDA for the company to begin clinical trials for its HemaXellerate cell therapy. Some are expecting an announcement related to its INDs this November and the anticipation seems to be stirring up RGBP’s stock.
It also seems RGBP has been cleaning house after settling a convertible note equivalent to $43,529 with the noteholder. But the company has evidently been on campaign to pay off its debts for several months now, paying off $967,830 in convertible notes and $539,392 in other fees through the issuance of roughly 706 common shares and 23.7 million Series A Preferred shares. This appears to have nearly erased the company’s convertible debt except one note which is due June of 2022.
Meanwhile the company has made at least two agreements with Oncology Pharma giving the latter the exclusive right to develop and commercialize IP related to the treatment of cancer. In October, RGBP agreed to provide Oncology with intellectual property related to the mRNA used to treat pancreatic cancer. In exchange, RGBP received a fee of $55,000, and will take 5% royalties in net sales as well as 10% of all consideration from sublicensees.
This has led some to speculate that RGBP could be an acquisition target for Oncology. But Precigen was also rumored to be a buyout candidate as well due to Precigen’s CEO – Helen Sabzevari – former role on RGBP’s Scientific Advisory Board. Another potential target could be Eli Lilly which has maintained a very good working relationship with RGBP for 5 years.
Beginning in 2016 with a definitive agreement allowing Regen to receive compounds from Lilly for drug discovery purposes and exchange information of mutual interest, the two companies have since covered a lot of ground together. In 2017, Eli Lilly’s former Eli Executive led RGB’s newly formed Business Advisory Board. Because there is a Drug Discovery Pact between both parties, some are wondering if RGBP may be a target for the massive company.
In any case, RGBP is largely believed to be an eventual acquisition candidate for a pharma company due to its impressive array of patents. The stock’s recent activity definitely seems to be hinting that whales are moving behind the scenes.
Media sentiment
Thanks @Weezus420 for breaking down the differences between RGBP stock and RGBPP stock – both which will move on the same catalysts.
Let's compare $RGBP share structure to $RGBPP…
Remember $DWAC and $DWACW?
Similar situation imo.
175 MILLION DTC vs 4 BILLION DTC
23x smaller float
What do you think is undervalued?
RGBP is up 17%, RGBPP is up .65%
RGBP market cap $100 million
RGBPP market cap $34 million pic.twitter.com/11oUp9F1NR
— ??Weezus?? (@Weezus420) November 5, 2021
Technical Analysis
RGBP stock chart
After spiking 60%, RGBP stock is trading at $.0258 with a support at .0236 and .0200. It is testing its resistance .0266 and if it breaks through, the next point of resistance could be near .0338. The MACD had a bullish crossover and is still trending upwards with no sign of a second crossover and the RSI is near 65 due to increased interest. Accumulation spiked up following a general downtrend as is typical of biotech stocks which move on binary events.
Should You Buy
With its most recent patent and numerous activities, RGBP seems to have something in the works. When an announcement is released investors will know definitively where the company is heading next, but speculation has excited many investors regarding the company’s prospects. In the short-term, this could cause a further spike in the stock but RGBP could also present a lucrative long-term hold for bullish investors. If its INDs are renewed or new paths for commercialization of its products are revealed, RGBP could be set to close out the year on a high. As is, if RGBP stock breaks through its current resistance near $.0266 then it could shoot up to $.03 and beyond.
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