Step aside Morphine, the new king of chronic pain treatment may have just entered the building. With Nutra Pharma's stock rising nearly 2300% year-to-date, its time we see what all the commotion is about. StocksHaven Investments takes a closer look at Nutra Pharma Corp. (OTC:NPHC) , which believes will begin generating significant revenues within the next 12 months.
The company has recently made waves throughout the biotech space with their recent “Best New Product” award winning drug, Cobroxin. The product is the first clinically proven treatment for stage 2 (moderate to severe) chronic pain, and was awarded the honour at the Efficient Collaborative Retail Marketing (ECRM) Conference in Miami, Florida. Winning this was no easy task, as a handful of well known companies attended the conference. The company is also developing treatments for Adrenomyeloneuropathy (AMN), HIV and Multiple Sclerosis (MS) through their wholly owned subsidiary, ReceptoPharm Inc. With billions of dollars in potential target markets, Nutra Pharma is one company which is ready to take the biopharmaceuticals sector by storm.
About Nutra Pharma Corp. is a development-stage biopharmaceutical company engaged in the acquisition, licensing and commercialization of pharmaceutical products and technologies for the management of neurological disorders, cancer, autoimmune and infectious diseases. The Company’s wholly owned subsidiary, ReceptoPharm, Inc. (Recepto Pharm) is a development stage biopharmaceutical company, which is engaged in developing technologies to treat the neurological diseases: multiple sclerosis; adrenomyeloneuropathy; amyotrophic lateral sclerosis; myasthenia gravis; and to treat the viral diseases, human immunodeficiency virus (HIV) and hepatitis-C.
The Company’s other wholly owned subsidiary Designer Diagnostics, Inc. (Designer Diagnostics) is engaged in marketing diagnostic test kits that are used for the rapid identification of infectious human diseases, such as Tuberculosis (TB) and Mycobacterium avium-intracellulare (MAI). Midterm goal Nutra Pharma Corp’s midterm strategy for the past three years has been to license Nutra Pharma Corp’s AMN, MS and HIV technologies in Nutra Pharma Corp’s attempt to bring these technologies to market within 5 years. Should Nutra Pharma Corp. obtain adequate financing, Nutra Pharma Corp’s midterm strategy remains the same— to accomplish these midterm goals in the next two years of that 5 year period.
Long-term goal Nutra Pharma Corp’s long-term goal is the use of drugs developed by ReceptoPharm and future affiliates in the field of neurological diseases, infectious diseases and autoimmune disorders. Due to Nutra Pharma Corp’s limited financial and operational resources, this goal will require Nutra Pharma Corp. to establish strategic partners or alliances with pharmaceutical companies, academic institutions, biotechnology companies, and clinical diagnostic laboratories, which will: (a) complement Nutra Pharma Corp’s research and development efforts; (b) reduce the risks associated with undertaking the entire process of drug development and marketing; and (c) generate licensing based revenue streams.
Potential Revenue Segments Nutra Pharma Corp’s potential revenue segments are composed of Nutra Pharma Corp’s attempt to generate revenues from license agreements, joint ventures, drug, and test kit sales with pharmaceutical companies, biotechnology companies and clinical diagnostic laboratories that generate license fees, as follows:
- License revenues developed through licensing agreements
- Joint venture revenues developed through joint venture in foreign countries that will permit local clinical trials and regulatory approval outside the United States
- Drug sales should Nutra Pharma Corp. be successful in obtaining FDA approval
- Test kit sales sold through Designer Diagnostics, Inc.
By far, the company's most prized product to date. Cobroxin is the first over-the-counter pain reliever clinically proven to treat moderate to severe (Stage 2) chronic pain. It is primarily intended to help with lower back pain, migraines, neck aches, shoulder pain, cramps, neuralgia, joint pain and pain associated with repetitive stress and arthritis. It is a new type of pain reliever that does not rely on acetaminophen or opiates for its pain relieving effects. Instead, Cobroxin uses a novel mechanism of action that Nutra Pharma’s drug discovery subsidiary, ReceptoPharm, has been studying for the past 10 years - a peptide from cobra venom. FDA Approval, Efficacy and Safety Cobroxin does not require FDA approval because it falls within the regulatory environment of the United States Homeopathic Pharmacopoeia. Unlike most homeopathic medicines, however, the efficacy and safety of Cobroxin is supported by significant clinical evidence including over 46 human clinical studies documenting the use of cobra venom as a pain reliever.Click here for a list of these clinical studies. According to the CEO, Rik J Deitsch, in a clinical trial they determined that being given 3 years worth of dosage resulted in having a slightly blurry vision. This is very significant when you consider how worried parents would get knowing they have Cobra's venom lying around the household.
Potential Target Market
The company also seems to have arrived on the scene for stage 2 pain relief at an ideal time, seeing as how the FDA has recently issued warnings on products that contain Ibuprophen. With the prescription pain relief market totaling nearly $14 billion and the over-the-counter (OTC) pain relief market totaling $8 billion, expected Nutra Pharma's Cobroxin to enter the market with almost certain success, seeing as how it has proven to be more powerful than morphine with less side effects and no addictive properties. According to CEO, Rik J Deitsch, Cobroxin is 600 times more effective for chronic stage 2 pain relief than morphine, all the while lasting 4 times longer. The CEO also confirmed that they have 3 validated farms for cobras and they are currently searching for more around the world. With the current state of these farms, they have enough for the first 6-12 months of product launch starting end of October.
Cobroxin will have a suggested retail price of $18.99 for the oral spray and $19.95 for the topical gel, making it one of the most affordable analgesics for moderate to severe chronic pain. Take into consideration one month treatments for competing products targeting the same sort of stage 2 chronic pain is estimated at around $100.00, you have quite the price competitive advantage with Cobroxin.
Subsidiary ReceptoPharm, Inc. ReceptoPharm, a clinical stage Biotech Company, has a process that safely modifies proteins derived from cobra venom for four drug products, two of which are proprietary, RPI-78M and RPI-MN. ReceptoPharm also has rights of a drug delivery method that uses an aerosol formulation, which is administered under the tongue. By using this shared aerosol delivery technology, oral delivery is attainable, an important step for a biologic product. The system is 50% efficient and affects drug delivery in approximately 40% of patients in which it was tested. Topical preparations are being examined for future applications in treatment of such conditions as pain and Rheumatoid arthritis. ReceptoPharm has four novel anticholinergic therapeutic protein products in various stages of development for the treatment of Human Immunodeficiency Virus (HIV), Multiple sclerosis (MS) Adrenomyeloneuropathy (AMN), Drug Addiction and Pain. All these diseases demonstrate a clear involvement with the nicotinic acetylcholine receptor (NAchR).
Although Nutra Pharma Corp. focused drug development efforts from 2006 to 2008 on clinical trials for ReceptoPharm’s HIV drug, RPI-MN, Nutra Pharma Corp’s primary focus now is on RPI-78M for the treatment of AMN. At this time, RPI-78M offers Nutra Pharma Corp. a greater opportunity then RPI-MN to bring a drug to market since the trials for RPI-78M are less expensive and Nutra Pharma Corp’s HIV related drug, RPI-MN, is competing in the HIV saturated drug market. Through ReceptoPharm’s research program, Nutra Pharma Corp’s goal is to obtain required regulatory approvals of ReceptoPharm’s HIV and MS products so that they can be marketed. Nutra Pharma Corp. plan to apply for Orphan drug status with the FDA to expedite approvals. ReceptoPharm secures confidentiality agreements prior to initiating contract research in order to protect any patentable opportunities.
Potential Target Markets Decision Resources, Inc., a research and advisory firms focusing on pharmaceutical and health care issues, forecasts that the HIV drug market will grow to more than $8 billion by 2013. The multiple sclerosis (MS) market has total global revenues of over $6bn in 2008. Those revenues will exceed $9bn during the second half of next decade, according to the World Health Organization (WHO). Adrenoleukodystrophy, or ALD, is a genetically determined neurological disorder that affects 1 in every 17,900 boys worldwide. For more information on their products visit here.
Patents, Trademarks, Licenses and Intellectual Property Nutra Pharma Corp. own 11 issued U.S. patents and have licensing rights to 18 issued U.S. patents covering technologies related to growing, detecting, identifying, defining antibiotic sensitivity and designing apparatus for the detection of 32 different paraffin-eating microorganisms that were assigned to Nutra Pharma Corp. by Nanologix, Inc.. These patents are used by Nutra Pharma Corp’s wholly owned subsidiary, Designer Diagnostics. For the full list visit here. Insider Holders Nothing spells confidence in the eyes of investors than seeing management own large amounts of shares in anticipation that their product will soon see success.
Technical Chart Analysis
Recently there has been over a 675% increase in average daily volume for NPHC and this shows a building of strength and momentum. Since August earnings, price has increased over 468% while moving within a very narrow and rising price channel shown in Orange on the chart. This past week’s price movement has shown an indication that a new higher price channel, shown in Blue on the chart, may have been established. A very strong Bull signal occurred early on Wednesday (9/9/09), a Morning Star pattern, shown in the Red circle on the chart. This bull signal also corresponded to the reversal that happened at the lower blue trend-line! On Thursday, the price closed right at the top of the narrow price Orange channel and also the mid-point of the higher price Blue channel.
This is the third time the price has been to the top of the narrow (Orange) channel, and it has been observed that the third time actually is the charm and usually the price will break and stay above the trend-line. With all the built up momentum and the strong bullish signal, the stock is poised to make a run to the top of the new price channel with a conservative level of .63 cents by the end of the day on Friday. It’s good to keep in mind the last time the stock was at this price level, it jumped from .43 to .88 cents in 2 weeks and went on to reach $1.00 dollar four weeks later.
Overall Sentiment As a short term outlook, expect the price on Friday, September, 11, 2009 to set a new 52wk high around the 0.63 as per the technical analysis. The CEO's recent Webinar given on Thursday, September, 10, 2009 was a huge success, instilling confidence in pre-existing and new investors alike. In the long run, Nutra Pharma Inc. should continue to test the $1.00 range as long as Cobroxin continues to attract potential grants, high profile investors and prescriptions once it begins selling during end of October, 2009. In the recent Webinar, the CEO also confirmed that clinical efficacy data on its Multiple Sclerosis drug, RPI-78M should be out soon. In conclusion, whether you've jumped in on this investment in the short term, or long term, you are bound to be left with a nice ROI (return on investment). Patience is a virtue.
Disclosure: LONG NPHC
"Featured Content" profiles are meant to provide awareness of these companies to investors in the small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. BiomedReports is not paid or compensated by newswires to disseminate or report news and developments about publicly traded companies, but may from time to time receive compensation for advertising, data, analytics and investor relation services from various entities and firms. Full disclosures should be read in the 'About Us Section'.
Add this page to your favorite Social Bookmarking websites