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). More recently RGBP has seen a steady appreciation in value, rising 67% over the last seven days while RGBPP rose 34%.
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.
The month of August has been busy for Regen BioPharma which was granted a patent for Antigen specific mRNA cellular cancer vaccines. Because mRNA is leading in the biotech industry today, this newly acquired patent is leading bullish investors to predict an upsurge in stock price. 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.
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.
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.
Looking at the last two weeks for RGBP, there appears to be a support near .0205 and a more immediate support at .028. RGBP has already surpassed its July peak putting its new resistance near April’s levels of .0462 and .0414. Accumulation has been stair stepping for the last few months. The MACD is trending upwards but a crossover is not yet clear. However, RGBP’s RSI is at 69.73 – RGBP is almost overbought as it was on August 9th and will likely correct after the market opens. The stock seems to be rebounding with investor confidence from yesterday’s 10-Q filing after overselling in the days prior. RGBPP is largely a sympathy play and follows the same trends as RGBP but trades at a higher value.
RGBP is in high demand considering its current volume but 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 recent activity and acquired patents give hope that the company may soon have a revenue stream.
Should you Buy?
Notably, RGBPP has 414 million outstanding shares with only 143 million unrestricted. This gives it a considerably lower float than RGBP which has 3.78 billion outstanding shares of which 3.5 billion are unrestricted. With Regen BioPharma dropping its filings and coming closer to uplisting its stock, the potential for RGBP and RGBPP to upsurge is tangible.
Investors should keep in mind that biotech penny stock companies are held to a higher level of scrutiny by the OTC, therefore the approval process may take longer for Regen BioPharma. Considering the company’s patented ground-breaking biotechnology and speculated buyout, RGBP could easily near April’s PPS. Currently RGBP is trading at $.034 and RGBPP is valued at $.071.
With shares almost overbought, investors can expect a dip soon and find an entry point at a lower level. Given the numerous catalysts and great fundamentals of this biotech penny stock, RGBP and RGBPP are expected to be runners.
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