Viropro Inc. (PINKSHEETS: VPRO) blew up 2700% on Wednesday after the company revealed it had signed a Letter of Agreement with Spectrum Pharmaceuticals (NASDAQ: SPPI) for the development and clinical production of a biosimilar version of Rituximab.
Wiki reports that Rituximab is used in the treatment of many lymphomas, leukemias, transplant rejection and some autoimmune disorders. In other words, there is a very large and substantial market for this product.
What happens to be appealing about Viropro is that at $0.14/share, the market values the company at roughly $24M. In contrast, NASDAQ-listed development-stage biotech companies that have no commercialized product, licensing agreements or other source(s) of revenue are valued at upwards of $100M. To name a few – Raptor Pharmaceuticals Corp. (NASDAQ: RPTP), Somaxon Pharmaceuticals, Inc. (NASDAQ: SOMX) or Myrexis, Inc. (NASDAQ: MYRX).
In addition to the new business relationship with Spectrum, which the company reports will result in “payments of milestones over an expected 36 months time span” as well as “the payment of royalties from ensuing sales“, Viropro is expecting continued sales from their first partner, Biopharmaceuticals Ltd. of Ahmedabad, India, in the form of royalty payments.
Viropro (VPRO), perhaps to the disadvantage of investors, trades on a relatively small exchange (over-the-counter). That means that even Spectrum Pharmaceuticals’ investors may not even know Viropro is publicly-traded.
On the other hand, that could also play to the advantage of shareholders…
Furthermore, Viropro is currently in negotiations for 2 major acquisitions and has recently secured a financial partner for its financing effort to come.
As we learn of further developments, you’ll hear it at PennyStockHaven.com first.