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Why is Nanobiotix Up Over 300% in 3 Days?

Nanobiotix_Logo

 

 

 


In an article last year
 we highlighted Nanobiotix (EPA:NANO), a company that has developed nanoparticles that interact with X-rays and maximize the effect of radiotherapy within tumor cells. These nanoparticles are designed for a single direct injection into the tumor. Since 50-60% of cancer patients receiving radiotherapy, the potential market size of this technology is huge.

Just over the past 3 days, Nanobiotix (EPA:NANO) has seen their shares increase over 300% on the back of a press release that announced positive results from the pilot phase of NBTXR3 in patients with advanced soft tissue sarcoma (STS). The press release went on to state:

On 10 February 2014, the Independent Data Monitoring Committee (IDMC) met and gave a positive assessment of the recent pilot STS data which showed that NBTXR3 had a good safety profile, which is infrequent in oncology. The positive results from the pilot phase of NBTXR3 in patients with advanced soft tissue sarcoma (STS), allow Nanobiotix to finalize and to announce its development plan for the launch of NBTXR3 on the market.

The key implication of this announcement is that Nanobiotix’s lead product, NBTXR3, could be CE marked for sale in the European Union by 2016 (one year earlier) as opposed to previous estimates of 2017. Nanobiotix is adopting the following strategies for commercializing NBTXR3 across three continents :

Nanobiotix_Development_Plan

 

Was an over 300% increase in share price merited given the announcement of “positive results” from a pilot phase of NBTXR3? There could be a significant revenue milestone from PharmaEngine associated with these “positive results” but it hardly seems such a sharp increase is merited for a one year earlier possible sale of their lead drug candidate. For speculators, there may be profits to be made in the short term, but for investors who find Nanobiotix compelling, they may be best served to wait until the hype recedes and establish a position when the shares find a base. Given such dramatic reactions by investors to a whiff of good news, the slightest whiff of negative news could send these shares spiraling providing a good entry point for those who believe in the potential of the underlying technology. On the other hand, any announcement of a partnership with a big pharma company for approval and sale in the US could send shares soaring again.

Nanobiotix has a current market cap of $361 million and 2013 revenues of only $259,016. U.S. investors who want to invest in Nanobiotix (EPA:NANO) will need to sign up for an Interactive Brokers trading account.

Most people don't know that Interactive Brokers is the biggest online brokerage firm in the U.S. and the only firm we know of that allows you to buy stocks directly on 22 different foreign exchanges. We've used IB for many years as a cheap platform to exchange currency, for trading stocks on foreign exchanges, and for trading U.S. shares at just $1.00 per 100 sharesClick this link to get started.

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