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SBFM Stock – The Next Big Biopharma Play?

SBFM stock

As a biopharma company, Sunshine Biopharma Inc. (NASDAQ: SBFM) has a main focus on developing anticancer and antiviral drugs – as well as nutrition supplements. The company has been gaining momentum lately due to its extensive efforts in developing drugs for cancer and COVID-19. Recently, SBFM stock witnessed a high trading volume of 65 million – leading to a major 150% increase overnight. With this in mind, many investors are bullish that SBFM stock could be set for another run-up.

SBFM Stock News

Capitalizing on the urgent need for a COVID-19 medication, SBFM has been developing SBFM-PL4 in collaboration with the University of Georgia. In light of this, SBFM announced an agreement with the University of Arizona to advance the development of inhibitors for PLpro – an enzyme that enables viral spread. The research will be followed by efficacy testing in mice infected with SARS-CoV-2. If the molecules show efficacy, they will be advanced to human trials.

Excitedly, the company’s CEO Dr. Steve Slilaty commented that “It is very important to find a wide array of inhibitors for PLpro, as they are responsible for suppression of the human immune system – enabling the virus to cause severe illness”. 

At the same time, SBFM is continuing its research with the University of Georgia to develop SBFM-PL4. Considering that the majority of the world population has not been vaccinated yet, SBFM’s treatment could see huge demand – since it is expected to be in tablet form. Taking into consideration the logistics and storage problems current vaccines are facing, the company’s treatment could revolutionize COVID-19 treatments if it is released.

In addition to the COVID treatment, SBFM is developing its flagship anticancer drug – Adva-27a. In preclinical studies, the company’s most advanced drug has shown impressive results. Adva-27a has shown effectiveness at killing a number of drug-resistant cancer cells including pancreatic cancer, breast cancer – as well as small cell lung cancer. 

The drug is also unaffected by the enzyme that makes cancer cells resistant to drugs – while showing a spectacular clearance time. With the drug indicated for phase 1 of clinical trials, the company intends to perform the trials at McGill University’s Jewish General Hospital in Montreal. Although the trials will take place in Canada, SBFM plans to implement FDA standards at all levels – with the company expecting the trials to take 18 months at least. 

Despite all of this, SBFM’s main catalyst lies in its leadership team. CEO Dr. Slilaty is a reputable scientist in the bioscience industry – and is referenced in a number of textbooks. In addition, Dr. Slilaty has many contributions to science – most notably the discovery of a new class of enzymes. Slilaty is also a skilled business executive as he has founded three biotech companies – with one of them reaching a market cap of $1 billion. As a result, many investors are bullish on the company’s potential as Slilaty is working with the same mindset to develop a treatment for cancer.

On another note, the company has delivered on its plans of uplisting to the NASDAQ while closing its underwritten public offering. Through the public offering the company raised $8 million in gross proceeds. The company plans to use the proceeds of the offering to finance its drug development activities as well as the repayment of a $1.9 million third-party debt. 

In terms of financials, the company reported total assets of over $2.5 million in its latest Q3 report – a $1.5 million increase from a year ago. At the same time, SBFM had revenues of $50 thousand an increase from $17 thousand in 2020. However, SBFM had a huge net loss of over $4 million – mainly due to convertible debt.

One reason that SBFM stock witnessed a surge in volume is the $1.5 trillion spending bill which was heard in the House on March 9th. The bill included a $15.6 billion pandemic aid package which was intended for research – leading many to believe that SBFM and companies like it would have an opportunity to capitalize on the funding. However, the provision was removed before final passage due to a lack of support from many Representatives.

In light of these catalysts, SBFM stock could be a profitable investment in the long-term. With only 4.47 million OS and a low float of only 3.51 million, SBFM stock has the potential to continue its surge as more news about the clinical trial are unveiled.

Media Sentiment

After SBFM hit @DonnieStocks price target, he was looking for a continued run.

Investors like @RealtorStarShar celebrated SBFM’s new high of the day.

Technical Analysis

SBFM stock

SBFM is currently trading at $3.85 with a resistance at 4.25. It shows main support at 3.78 and secondary support at 2.08. Accumulation is stable after a recent spike and the MACD is extremely bullish. The RSI is at 66 indicating that SBFM stock is still overbought.

SBFM stock

SBFM stock’s recent run-up means the stock is currently overbought and bullish investors should wait for the RSI to regulate as they find an entry point. The stock recently went through a stock split which caused a significant drop in the PPS.

SBFM Stock Forecast

As it continues developing its anticancer and COVID-19 drugs, SBFM has the potential to become a leader in the biopharma industry. With phase 1 of clinical trial for Adva-27a approaching, SBFM stock has the potential for another run-up if the trials are successful. While the trials may take a long time, SBFM stock could be profitable in the long term given biopharma stocks’ tendency to move on FDA news. However, the main catalyst for SBFM’s run was the Congressional spending package and with Covid relief funding currently in limbo, whether SBFM continues its run remains to be seen.

If you have questions about SBFM stock and where it could be heading next feel free to reach out to us in our free alerts room!


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