Specializing in the treatment of cancer and autoimmune diseases, Regen BioPharma Inc. (OTC: RGBP) and (OTC: RGBPP) is a biotech penny stock making notable contributions to the industry and particularly the immunology and immunotherapy space. In April, the company obtained a license entitling it to exclusive rights for developing and marketing IP for the treatment of pancreatic cancer. This prompted a multi-day runup of 1076% for RGBPP (preferred stock) and 2723% for RGBP (common stock). 

Biotech Catalysts

At the forefront of the biotech industry, Regen BioPharma’s portfolio of patents has allowed the company to make notable leaps. In March the company was granted a patent for using T regulatory cells in the treatment of arthritis and autoimmunity. Now, testing this cell treatment on animals, Regen BioPharma will have a lengthy review process with the FDA before it becomes marketable. However, the global market for Rheumatoid Arthritis drugs alone was forecast to reach $36.11 billion by 2027. If this treatment proves successful, the ROI could be significant. 

Regen BioPharma was granted a patent for Antigen specific mRNA cellular cancer vaccines on August 17th but the company has yet to announce officially announce its success. Because mRNA is leading in the biotech industry today, this newly acquired patent is leading bullish investors to predict an upsurge in stock price. The company is currently operating at a loss of $1.68 million and has no cash on hand due to the hefty costs of research and clinical trials. While this is typical of biotech companies, Regen BioPharma’s patent gives hope that the company may soon have a revenue stream.

At the same time, the company has released its filings in preparation for uplisting to the OTCQB. Its decision to opt for full reporting status has fueled speculation of an upcoming Big Pharma buyout which would require this level of detailed reporting.

The company released an 8-K on September 2nd which supports CEO Koos’ recent actions as the document stated the company “has not issued debt convertible into equity securities of the Company since July 2020” and more importantly, the company has no intentions of issuing “any additional instruments convertible into the equity securities”. Similarly, RGBP is entering negotiations with noteholders to resolve their obligations in such a way that will “eliminate or severely limit potential dilution” from the remaining notes.

Similarly, the CEO of Precigen, Helen Sabzevari, is on RGBP’s Scientific Advisory Board. Both companies operate in similar niches making the possibility of PGEN pursuing a merger acquisition or buyout of Regen BioPharma not entirely improbable. Pointing to Regen BioPharma’s impressive array of patents and its CEO David R. Koos’ recent efforts to update all expired patents, bullish investors are anticipating a buyout or merger in the near future. 

Media Sentiment

Both RGBP and RGBPP stocks are not yet current, but with Regen BioPharma dropping its 10-Q on August 18th both stocks may become current within the next few weeks. With this impending catalyst, FinTwit influencers like @FatCash7 – who has 22.6k followers and called RGBP when it was at $.0005 – have been spreading the word. 

Technical Analysis

OTC: RGBP

Following a steep price drop on August 30th, RGBP appears to be forming a cup and handle pattern. The stock dipped low on the 31st hitting .39 before trending upwards and settling at its current trading price of $.051. The stock appears to be testing a rough support level now with a more defined support level at .0428. Its resistance it at .0739. Accumulation had dipped but is now flattening while the RSI is moving down at 48.07. Following a crossover on September 1st, the MACD has been moving upwards with some flattening.

This movement is in keeping with the cup and handle pattern which hits a high point before pressure drives it down. However, RGBP is showing more of a “V” shape than a “U”. The handle is moving downwards though and if this bullish sign is correct, the stock could pass its resistance at .0550 and shoot upwards for greater gains.

Should you Buy?

After the stocks runup upon becoming OTC Pink, the selloff was steep but its patent announcement, speculated buyout, and plans to uplist provide additional catalysts that could drive momentum. If the cup and handle pattern is correct, this bullish sign may be a potential entry point for investors looking to make short term gains.

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