Theratechnologies Inc. (OTCMKTS:THERF)
Theratechnologies Inc. (OTCMKTS:THERF) is a specialty pharmaceutical company headquartered in Montreal, Canada. The biotechnology firm focuses on addressing the unmet medical needs of HIV patients and promotes healthy living and an improved quality of life among HIV patients. Theratechnologies works with TaiMed Biologics, Inc. and on May3, 2017, the two companies announced that a Biologics License Application (BLA) had been filed with the U.S. Food and Drug Administration (FDA) for ibalizumab for the treatment of multidrug resistant Human Immunodeficiency Virus-1 (MDR HIV-1). If approved, ibalizumab will be the first antiretroviral treatment (ART) with a new mechanism of action to be introduced in nearly ten years and the only treatment that does not require daily dosing.
Previously, Ibalizumab received a “Breakthrough Therapy” designation from the U.S. Food and Drug Administration. The Orphan Drug designation is given to a therapy, or treatment, if it represents an important improvement over existing options for life-threatening diseases or conditions. The FDA also granted Ibalizumab with an “Orphan Drug” designation. Drugs with the Orphan Drug designation are eligible for certain financial advantages during development and commercialization.
HIV is a particularly troublesome virus as it sometimes mutates and produces drug-resistant strains which means that previous, effective treatments will fail. The number of HIV afflicted Americans that are currently resistant to traditional treatments is said to number between 20,000 – 50,000. Of that number, 12,000 are estimated to have the virus mutate in the middle of treatment so that modification is required.
Theratechnologies Inc. (OTCMKTS:THERF) helped develop Ibalizumab for the treatment of HIV. The key characteristic of the drug is that it binds to the second extracellular domain of the CD$+ T cell receptor. This means, potentially, that Ibalizumab can prevent HIV from infecting CD+ immune cells while not affecting normal immunological function. In other words – Ibalizumab is active against HIV viruses that have been proved resistant to currently approved treatments.
In other news, Theratechnologies Inc. (OTCMKTS:THERF) announced the election of a new board member. Dale Weil has 35 years of business development experience – much of it in the healthcare sector. Most recently, Mr. Weil was a senior advisor to the President of McKesson Canada. McKesson Canada is a $33 Billion healthcare company involved in the delivery of pharmaceuticals, medical supplies, and information technology.
Theratechnologies Inc. (OTCMKTS:THERF) opened 2017 at $2.05 and has recently traded over $5.50 for a gain of over 175%. For comparative purposes, the S&P 500 has gained around 8%.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.