Antibe Therapeutics Inc. (TSXV:ATE) is in active negotiations with other pharmaceutical companies across the globe, especially those representing smaller market opportunities
SmallCapPower | March 23, 2018: Antibe Therapeutics Inc. (TSXV:ATE), based in Toronto, is a diversified biotechnology company operating in two divisions – Pain/Inflammation and Regenerative Medicine. The Company is working towards safe and non-addictive treatment of pain and inflammation, which are designed to prevent widespread gastrointestinal damage and bleeding caused by non-steroidal anti-inflammatory drugs (NSAIDs). The Company’s Regenerative Medicine division is catering to the dental market through its subsidiary, Citagenix Inc. Active in 15 countries, Citagenix is operating in Canada via direct sales teams and internationally via network of distributor partnerships.
Antibe Therapeutics has recently entered into a licensing agreement with Laboratories Acbel and is actively looking for partnership opportunities. At a current market capitalization of $90.1 million, investors should monitor the developments of this Company and look for attractive entry points.
Investment Thesis
- Innovation in safe treatment of pain and inflammation
- Seeking partnership opportunities
- Ongoing clinical research and development
Innovation in safe treatment of pain and inflammation
Antibe Therapeutics is addressing the unfulfilled requirement of non-addictive pain relief through its lead drug, ATB-346, which is developed keeping in consideration gastrointestinal (GI) and cardiovascular (CV) safety. ATB-346 is highly superior to existing non-steroidal anti-inflammatory drugs (NSAIDs), according to the Company.
ATB-346 is a new molecule developed by Antibe Therapeutics with a moiety that releases hydrogen sulfide (H2S) conjoined to naproxen. H2S activities in the GI tract prevent damages, which is not the case in NSAIDs. Studies have shown that ATB-346 produces negligible GI damage over the full dosing range as compared to NSAIDs. Unlike the NSAIDs, initial studies have demonstrated no significant effect on blood pressure, results of which were confirmed in Phase 1 and Phase 2a studies. 
Antibe Therapeutics successfully accomplished its Phase 2a clinical trial for ATB-346 in August 2017 in osteoarthritis patients. The drug exhibited pain relief that was approximately twice that of NSAIDs like naproxen and celecoxib. Even the dosage level administered, at 250 mg once daily, was one-sixth of anticipated human dose.
Seeking partnership opportunities
Antibe Therapeutics is continuously looking at partnership opportunities for providing non-dilutive sources of funding in order to aid its drug development. In February 2017, the Company entered into an exclusive licensing deal with Laboratories Acbel in markets such as Greece, Romania, Serbia, Bulgaria, Albania, Algeria and Jordan. Acbel is an affiliated holding company of Galenica SA, one of the largest pharmaceutical companies in Greece with a strong sales and distribution presence in the Balkan region.
According to the deal, Antibe Therapeutics received an upfront payment of $1.1 million and a 5% royalty on sales in the region. The licensed territory represents about 1% of the global NSAID market. Such regional deals validate the ATB-346 drug and enhances its market value.
Antibe Therapeutics is in active negotiations with other pharmaceutical companies across the globe, especially those representing smaller market opportunities (outside U.S. and Western Europe).
Ongoing clinical research and development
Apart from ATB-346, Antibe Therapeutics is developing a wide variety of drugs and medical devices actively. In the Pain and Inflammation segment, the Company is working on ATB-352 and ATB-340 drugs targeted at alleviating acute pain and reducing the formation of blood clots. Both the drugs are in the pre-clinical stage and are looking at a combined market opportunity of more than $11 million.
In the Regenerative Medicine area, Antibe Therapeutics is targeting a global market valued at more than $700 million through its commercial subsidiary, Citagenix Inc., which is the market leader with a $9 million revenue base. Citagenix has a varied portfolio of bone grafts, dental membranes, surgical instruments and other products that support specialized surgical procedures. At present, products like CGX-227, CGX-443 and URIST (CGX-276) are under development, which is aimed at the oral and maxillofacial surgery market.
Outlook and Valuation
In terms of valuation, Antibe Therapeutics currently trades at a market capitalization of $90.1 million on the TSXV with price-to-book multiple of 18.0x. Although the Company has a revenue stream via its subsidiary, it is still in the research and development phase. Revenue is expected to increase considerably once Antibe’s drugs are launched into market.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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