Nanalyze

Regen Biopharma IPO: Buyer Beware

Around 6 months ago we published an article titled “Big Red Flags from Bio-Matrix and Regen Biopharma“. Any investor who would have sold their shares in Bio-Matrix (OTCMKTS:BMSN) the Monday after our article was published would have been fortunate. Those who did not sell their shares would have lost -61% of their investment as of today. Investors who held BMSN over the past 5 years would have lost -98% of their investment. This should come as no surprise given that the CEO, David Koos, has a track record of destroying shareholder value as discussed in our previous article. Just this past week, another vehicle has emerged that will undoubtedly destroy shareholder value over time. This week saw the IPO of the Bio-Matrix subsidiary, Regen Biopharma (OTCBB:RGBP). At the helm of this venture is none other than David Koos.

In May of 2012, Regen unveiled their ambitious plan for “value optimization” which concluded with the following statement:

Month 18-24: Exit. It is intended that technologies “incubated” by Regen will be spun off either as separate companies, or sold to Large Pharma companies seeking to enhance their therapeutic pipeline.

Those dates have come and gone. What progress did the company actually make since then? The following statement was made in a press release issued by Regen in November of 2012 regarding their lead drug candidate HemaXellerate:

Regen intends to file an IND Application in the fourth quarter of 2012 and conduct Phase I/II clinical trials during 2013 and 2014.

Regen missed the mark completely. The IND application was filed in Q1 2013 where it currently sits today. No clinical trials have begun because they would first require the IND application to be approved as a prerequisite to beginning Phase 1 trials. Below is the definition of an IND application:

Current Federal law requires that a drug be the subject of an approved marketing application before it is transported or distributed across state lines. Because a sponsor will probably want to ship the investigational drug to clinical investigators in many states, it must seek an exemption from that legal requirement. The IND is the means through which the sponsor technically obtains this exemption from the FDA.

In May 2014, Regen issued a press release stating that they submitted additional information to the FDA for their IND application. The FDA responded by requesting additional information on animal safety studies. No update on the IND application has been provided since then.

Even if the IND application is approved and Mr. Koos can then transport vials of HemaXellerate across state lines, with what funds will the company use to finance Phase 1 trials? The $49 thousand in cash that currently sits on the company’s books? Speculators who buy or hold shares in Regen (OTCBB:RGBP) can continue to drink the Koos Kool-Aid, but it is unlikely that they will ever reap the rewards they seek, and more likely than not will continue to endure share price erosion accompanied by more broken promises.

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  • john doe

    You guys are so full of ***t. You are just trying to bring this down (again) so you can reap hugh rewards. Buyer beware of Nanalyze web site they just want your money, illegally!!!!!!!!!!!!!!!!

    • Nanalyze

      Firstly, we edited your comment to obscure language that might be offensive to our readers.

      Regarding accusations of short selling, we clearly state in our disclaimer we never short sell any stock discussed on this site. This is a common accusation posed when any truths are stated about OTC companies that don’t paint things in a positive light. Our below article highlights this in greater detail:

      https://www.nanalyze.com/2013/08/the-dangers-of-over-the-counter-otc-stocks/

      The above article covers the fact that short selling OTC stocks is difficult because most brokers do not waste their time providing shares to short for issues that are so volatile and subject to litigation at times. Additionally, shorting OTC stocks is not a good strategy because speculators behave very irrationally.

      We post objective information about OTC stocks because not many outlets do, consequently many of our readers look to us to shine light on very speculative OTC plays that while sounding enticing, have little merit. Many OTC investors do not apply diversification to their investment strategy and place big bets on a single stock hoping to pick the next Microsoft. We will continue to write objective articles about companies we feel investors may want to invest in and companies investors may not want to invest in. This is a company that investors should not invest in based on factual information that speaks for itself.

  • gMAN

    what reputable site uses this language in an intelligent stock discussion “can continue to drink the Koos Kool-Aid”.

    Nanalyze is an probably an offshoot of some boiler room operation..they neglected to factor in the “free” RGBP shares received which would obviously lower the 61% drop. Also, what startup advancing therapies or drugs through trials has the $$$? That’s a ridiculous comment.

    Furthermore, not really sure why i’m wasting these keystrokes, Nanalyze probably has 8 people who visit this site regularly.

    EVeryone always has an Agenda. HOLD onto those shares

    • Nanalyze

      Personal attacks do not detract from the factual information in this article that speculators in Regen Biopharma are concerned about. We are unaware of any non-OTC “drug development” company that is publicly traded and has less than $60 thousand of assets, $49,000 of which is in cash. We appreciate comments such as yours that help support the fact; that nearly all OTC companies, whether management is acting in a malicious manner or not, lose money for those who choose to invest in them.

  • khamradist

    For everyone who believes in this train wreck, here is the CEO of regen talking about his strtegy for entest.
    https://www.youtube.com/watch?v=zTvpsPKehB4
    10 dogs for his trial and 10 humans for Regen’s Phase 1 test. Conincidence? Entest bombed so bad that currently sits at .0004 a share. He has two basset hounds so he must be able to make things happen. How many clinics were acquired? Zero. This may be the worst piece of video i have ever seen, but not as bad as this one. Here’s another entest video with some “doctors”:
    https://www.youtube.com/watch?v=OT3Tc8GPfoQ

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