PKTX trade ideas
A Life Changing Science And A Life Changing StockSummary
PKTX is where CSBR was 3 years ago.
PKTX's AAGP molecule is life changing.
Data is coming. With that comes higher stock price.
Those of you who have been following me the last few years, because of my call on Champions Oncology, CSBR, know that I have been predicting that ProtoKinetix PKTX is destined to be my next CSBR. The dynamics of each company and their respective stocks have parallels that can not go unnoticed.
For years CSBR had an incredible technology that the market had just not taken notice of. In 2014, 2015 and much of 2016 CSBR essentially traded by appointment and posted many zero volume days. Even a reverse split and an uplist to NASDAQ didn’t wake the stock up. Then around the 3rd quarter of 2016, the market finally took notice and we saw CSBR go from the high 1-dollar range to as high as $15 and some days trading several millions of dollars in volume. Why the big difference? Sure, they had some wins, they raised some money, landed a contract, increased revenues and brought on an IR firm, but at the end of the day, what really happened is, the market finally realized what they were all about. The market is not always efficient. Many great companies go unnoticed for years while many companies that are garbage enjoy the benefit of liquidity and over inflated market caps…dot com bubble, cryptocurrency, tulip bulb mania etc.
First, a little bit about ProtoKinetix. OTCQB:PKTX. ProtoKinetix is a molecular biotechnology company that has developed and patented a family of hyper stable, potent glycopeptides (AAGP) that enhance both engraftment and protection of transplanted cells used in regenerative medicine. For those of you that are not biochemists or hold a PHD in immunology, let me simplify what this means. Very simply put, their AAGP molecule:
Is an anti-aging molecule
Increases cell survivability
Encourages cell growth
Increases cell viability
Improves cell functionality
Why is this important? Because the use of the AAGP molecule can be used to improve treatments of nearly every disease known to man. I know…that’s a big deal.
They began their first human trials in 2017. The trial is for the treatment of Type 1 diabetes with pancreatic islet transplants. The addition of AAGP to the transplant should increase the life of the islet, thereby increasing the success of the transplant.
AAGP is currently being tested or soon to be tested in the following:
Kidney Ischemia
Ischemia is a condition that occurs when blood flow to cells, tissues or organs is severely restricted. This condition can affect any part of the human body. When this happens, cell death and organ damage follows rapidly. Ischemia is a major cause of kidney damage, heart attacks and strokes. Testing will determine whether AAGP™ can reduce the inflammatory response that causes cell damage and organ failure that occurs during an ischemic attack.
Normothermic Liver Perfusion
Normothermic (body temperature), ex vivo (outside the body) liver perfusion (method of irrigation) is a therapy to livers outside of the body before transplantation. Again, simply put, AAGP, will keep the harvested organ viable longer. This can apply to any organ of the body. A true game changer for organ transplants.
Retinal Cell Replacement
Use of AAGP will improve the survival of stem cells that are currently being used in human trials to treat retinal blindness. Studies have already been completed at the University of British Columbia and showed dramatic improvement on cell survivability and viability, functionality with the addition of AAGP.
Monoclonal Antibody Production
Monoclonal antibodies are antibodies that are made by identical immune cells that are all clones of a unique parent cell, these are used in the rapidly growing field of immunotherapy. Monoclonal antibodies are currently being used to treat Cancer, Rheumatoid Arthritis, Multiple Sclerosis, Cardiovascular Disease, Systemic Lupus Erythematosus, Crohn's Disease, Ulcerative Colitis, Psoriasis, Transplant Rejection, and several more conditions.
By adding AAGP will lead to a dramatic decrease in the cost of production of monoclonal antibody medicines.
Bone Marrow Recovery
Bone marrow can be collected and cryopreserved. Conditions that can be treated by transplantation include bone marrow diseases, histiocytic disorders, hemoglobin opathies, inherited immune system disorders, inherited metabolic disorders, leukemias and lymphomas, myelodysplastic syndromes, multiple myeloma, plasma cell disorders, other cancers and malignant diseases. The inclusion of AAGP will increase functionality and viability of the bone marrow. This could then be expanded to all cryopreserved cells.
Cord Blood Preservation
Cord blood is the blood left in the umbilical cord and placenta immediately after birth. It can be collected, stored and used at any time during a baby’s lifetime to treat a wide variety of diseases and medical conditions. Cord blood is currently being used to treat multiple forms of cancer, hematopoietic diseases, inborn errors of metabolism and immune system diseases. You guessed it, AAGP will improve viability and function of the stored cord blood cells.
Ischemic Stroke Repair
Ischemic Stroke is associated with severe disabilities and a high recurrence rate. Testing of AAGP™ molecule is to prove it suppresses the inflammatory attack caused by ischemic stroke thereby preventing any long-term damage to the human body.
I could continue but I think that I’ve made my point. AAGP part of the future for the treatment of cancer, blindness, diabetes, transplants, stroke… AAGP conceivably could be used in every cutting edge treatment that we are currently aware of. We’re not just talking about one of two things it can treat, as stated before we are truly talking about nearly every ailment that affects the human body.
To be clear, these things are currently in trials and studies, but the results have been nothing but positive. Last year they announced their first working relationship with a large unnamed international biotech company. I believe we will see more of this. Given the enormity of the possibilities of this molecule, I see only one outcome for ProtoKinetix and that is a sell of the company. They are just too small to capitalize on such a vast technology.
Now that I’ve covered the science and its potential, let’s get into the nuts and bolts of the company. The company was essentially left for dead in 2012. No filings were made for over 18 months and the demise of the company was a given. Then in 2014, through the efforts of the current CEO, the company was revived. This is not the typically outcome for a micro-cap that is in trouble. By mid-2014, the company was current of their filings and back up and running. They also moved from Canada to the US.
Not only did they get going again, they are one of the tightest ran micro caps you will find. The 2018 cash burn for the company was just under $600k. This is remarkable for any public company but even more so for a biotech. In part they are able to keep expenses low due to the fact that most of their trials and studies are Investigator Sponsored by the University of Alberta, so the company isn't the one footing the bill for the research. Another reason for the low expense is the CEO’s salary is $1 a year. More on him later. To top it all off the company not only has no convertible debt it has no debt at all. Unheard of for a small biotech.
One last compelling thing about this company is the amount of insider buying. I can safely say; I have never seen as many Form 4’s from a company as I have seen from PKTX. The buying has been significant. To give you an idea, the current CEO’s initial form 3 that was filed in June of 2014, showed him owning 19,670,500 shares. His most recent form 4 shows him owning 61,353,833 shares. I’ll save you the math exercise, that is an increase of over 41 million shares. Some have been acquired through private placements, but a huge number have been bought in the open market. The past and current CFO were and are regular Form 4 filers as well.
So, the big question? Why is PKTX only trading at .08 with a $22 million market cap. There are a few reasons.
Like CSBR, they have been spending their time on building a business and increasing the value of their technology, rather than spending their time on pumping their stock up.
History. Like I said, the stock was left for dead and forgotten about. It takes a long time to recover from that. And legacy shareholders, I’m sure took advantage of an opportunity to get out, once they had the chance.
It’s a tough environment for OTC stocks. In a market that has been as good as what we’ve seen the last few years, people are content with the easy money being made in the big names.
Why buy now?
The technology…AAGP is a life changing molecule. Nearly unlimited upside.
Last year’s announcement of a Material Transfer Agreement with a global biotech company. Although the market didn’t take much notice, this is significant. It’s official, the big boys are starting to explore the AAGP molecule.
Data/Trials/Studies – Press this week announced they expect results from Phase 3 testing for Retinal Cell Replacement. Data is king and we’re starting to get it. Data is what will bring big biotech knocking…along with their checkbook.
No debt
Insider buying
It’s cheap. $22 million market cap is nothing for a company with a technology of this potential.
I do believe the time is now. ProtoKinetix not only has a life changing molecule, I’m also betting that PTKX will be a life changing stock.
Disclosure: I am/we are long PKTX, CSBR.
