Amarantus Bioscience Holdings Inc (OTCMKTS:AMBS) shares are consistently holding support and embracing a core bid that appears to be in accumulation along the $0.04/share area over the last 10 weeks. The question looking ahead is about the evolution of that chart pattern. This is a company with some big plans, and investors may benefit from taking a close look. To get a sense of where this story may be headed, it’s useful to delve into the details revealed in the company’s recent overall business update.
“In April 2017, Amarantus Bioscience Holdings (“AMBS” or the “Company”) made the strategic decision to house our various assets in individual subsidiaries to raise focused capital in order to move the assets forward. The Company formed wholly-owned subsidiaries Elto Pharma, Inc. to house intellectual property (IP) rights to Eltoprazine which is moving into Phase 2b clinical development for the treatment of Parkinson’s disease levodopa dyskinesia (PD-LID) and MANF Therapeutics, Inc. to house IP rights to mesencephalic astrocyte-derived neurotrophic factor (“MANF”) which is moving into IND-enabling studies for the treatment of orphan ophthalmological diseases. The formation of Elto Pharma and MANF Therapeutics added to the already established wholly-owned subsidiary Cutanogen Corporation which is developing Engineered Skin Substitute (ESS) initially for the treatment of life-threatening pediatric severe burns. Taken together, these three subsidiaries of AMBS are developing orphan therapeutic assets that are in areas of neurology, regenerative medicine and ophthalmology where competition is limited, and where each program has the potential to become ‘standard of care’ for multiple indications.”
Amarantus Bioscience Holdings Inc (OTCMKTS:AMBS) casts itself as a biotechnology company developing treatments for orphan disorders in the areas of neurology, regenerative medicine and ophthalmology through its subsidiaries.
AMBS’ wholly-owned subsidiary Elto Pharma, Inc. has development rights to eltoprazine, a Phase 2b-ready small molecule indicated for Parkinson’s disease levodopa-induced dyskinesia, Alzheimer’s aggression and adult ADHD. AMBS acquired the rights to the Engineered Skin Substitute program (ESS), a regenerative medicine-based approach for treating severe burns with full-thickness autologous skin grown in tissue culture that is being pursued by AMBS’ wholly-owned subsidiary Cutanogen Corporation.
AMBS’ wholly-owned subsidiary MANF Therapeutics, Inc. owns key intellectual property rights and licenses from a number of prominent universities related to the development of the therapeutic protein known as mesencephalic astrocyte-derived neurotrophic factor (MANF).
MANF Therapeutics, Inc. is developing MANF-based products as treatments for brain and ophthalmic disorders. MANF was discovered by the Company’s Chief Scientific Officer John Commissiong, PhD. Dr. Commissiong discovered MANF from AMBS’ proprietary discovery engine PhenoGuard.
AMBS also owns approximately 80 million shares of Avant Diagnostics, Inc. via the sale of its wholly-owned subsidiary Amarantus Diagnostics, Inc. that occurred in May 2016.
As noted above, the company’s subsidiary just put out a presser detailing the publication of what may turn out to be indications of powerful R&D advances coming to fruition. Naturally, the most important catalyst here lies in the details of that publication. According to the release, “The data demonstrated that chronic delivery of human recombinant MANF (hrMANF) starting two days after stroke-like injury in the distal middle cerebral artery occlusion (dMCAo) rat model of ischemia-reperfusion injury resulted in statistically significant improvement in functional outcomes at each time points assessed (7 days, 14 days and 24 days post-treatment).”
But this will also require new capital to bring to market. If these ideas intersect in a productive manner – the R&D matches up well with respectable non-toxic funding – then the sky could be the limit here.
Also from the company’s major corporate update in May, we can glean a sense of how this might actually play out:
“AMBS is focused on utilizing regulations created under the JOBS Act to raise equity capital that will allow it to complete its recapitalization plan and focus on the business of managing its portfolio. The Company is in active discussions with key advisors and investment banking firms to advance this effort. In March, the Company completed the Tender Exchange which restructured outstanding securities that previously inhibited the Company’s ability to raise equity capital, and in April retained counsel experienced in negotiating with accounts payable (AP) creditors to complete the AP settlement requirements under the Tender Exchange agreement, thereby releasing the liens on the Company’s assets. Going forward, the Company is looking at the next equity raise under the JOBS Act as the turning point that will allow it to emerge from the recapitalization phase and return to normal business operations.”
This could introduce precisely the type of non-toxic funding investors and the market want to see to fuel this story into a new gear.