Avalon GloboCare (NASDAQ: ALBT), a NASDAQ-listed company with only 3.22 million shares in the float, is better positioned than at any time in its history to accelerate growth in 2023. In fact, after completing a share consolidation, raising capital at a premium to the market, and bolstering its IP portfolio with what's being considered a breakthrough patent award, any weakness in ALBT stock may be adding to an already compelling value investment opportunity.
Investors may have been spooked by the company's recent reverse split. Although risk is associated with any investment, in ALBT's case, the recap, coupled with a friendly and restrictive capital raise, does position the company to accelerate an ambitious agenda to deliver shareholder value. In addition, insiders are heavily invested in the company, which, more than anything, aligns their interests with other holders of its common stock.
Those interests are likely to be rewarded. Over the past few quarters, ALBT has enhanced its IP portfolio, strengthened research partnerships with leading institutions, and is set to close a transformative acquisition that will add millions in revenues and contribute appreciably to strengthening its bottom line.
Partnerships, Acquisitions Support Clinical Progress
That acquisition will add to several research partnerships and considerable value drivers. One of its partnerships is with the University of Pittsburgh Medical Center (UPMC) to develop new cancer immunotherapy approaches and streamline manufacturing processes. The collaborative study could have far-reaching effects, noting that they are working to develop powerful cancer treatments with a rapid bio-manufacturing time (1-2 days instead of weeks). It’s a potentially transformative advantage that could fuel their intended result of getting life-saving therapeutics through the review and approval processes and reaching patients faster than ever imagined.
Avalon is also advancing a research partnership with the University of Natural Resources and Life Sciences (BOKU) in Vienna, Austria. The goal is to co-develop a novel, cell-free, in-silico system that would expand Avalon's ability to design and produce novel cell membrane proteins, including receptors found on the surface of immune and cancer cells that function in cell signaling. Expected end results could also provide ALBT with an efficient tool to screen and optimize potential therapeutic targets.
On that front, perhaps the best news is that progress toward reaching that goal is being made, noting a co-developed and jointly filed patent with BOKU on a novel S-layer coated emulsome technology (SLET) platform for next-generation, targeted drug delivery and cellular immunotherapy applications. Avalon noted expectations from this novel SLET platform to accelerate the development of its mRNA-based Flash-CAR™ and other cellular therapy programs. They have good reasons to be optimistic.
Data so far shows that targeted delivery of mRNA into immune effector cells using SLET can open pathways to a new generation of cancer immunotherapy and applications, including targeted drug delivery and therapeutics, vaccine development, in vitro diagnostics, and cellular medicines. Those initiatives utilize traditional research methods. However, investors should note that ALBT also focuses on the possibilities brought about by using artificial intelligence to produce new medicine.
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Ushering In A New Frontier In medicine
Updates about its enhanced protein design "QTY Code" technology show things are progressing quickly on that front. The value driver here is that ALBT's approach isn't more of the same. Instead, ALBT's AI-empowered approach to drug development is appreciably different from others and is proving that point by identifying a new method for quickly predicting the design of so-called "water-loving" or hydrophilic variant structures of the 14 glucose transport membrane proteins in cells.
That newly patented technology could be a valuable contributor to drug development because it allows researchers to study specific glucose membrane transport proteins more easily in water. Results are impressive, evidenced by their publication on June 27th, 2022, in QRB Discovery, a peer-reviewed research journal of biological function, structure, and mechanism. That analysis highlighted that the QTY code demonstrated a novel method for quickly predicting the structures of water-soluble versions of glucose transporter proteins, which are important in cancer.
The better news for patients, ALBT, and investors is that the discovery is valuable to cancer drug development since these proteins are historically challenging to study and poorly understood. However, ALBT's technology could change that dynamic by providing a way to learn about these transport proteins, especially those that regulate glucose and play a role in cancer growth. Thus, understanding how they work can accelerate researchers' understanding of these proteins and the development of antibodies against them to treat cancer. In other words, ALBT could be able to monetize its asset.
Chances To Monetize IP Portfolio
That scenario is likely, especially after the USPTO issued a patent that protects claims covering the composition of matter and methodology for multiple novel QTY-code modified cytokine and chemokine protein receptor molecules. The technology, jointly filed with Dr. Shuguang Zhang of the Massachusetts Institute of Technology, is considered a breakthrough technology that can turn difficult-to-work-with water-insoluble transmembrane receptor proteins into water-soluble proteins.
That's a potentially significant accelerant to drug development processes, noting that its value can be leveraged by virtually any clinical-stage pharmaceutical company since it significantly enhances the solubility of designer peptides and proteins and expands the repertoire of selected therapeutic targets against cancer and other diseases.
That technology isn't the only value driver. ALBT has jointly filed and expects to leverage value from at least 16 other patent applications. In addition, the company can benefit from co-inventions with key strategic partners, including a top-5 U.S. university, a leading education and research center in Europe, and a premier multi-national developer of cellular therapies in oncology. Thus, while the newest patent can enhance ALBT's position as a leader in immuno-oncology and cellular medicines, it's certainly not a lone contributor.
In fact, as just a single part of an impressive IP portfolio, investors should be appraising ALBT on a sum-of-the-parts basis. And in ALBT's case, as they continue to accrue an arsenal of IP firepower, the likelihood to capitalize on commercial opportunities from them increases. The company recently discussed one already in play.
A Breakthrough In Fusion Gene Map Technologies
ALBT announced that it has deployed a breakthrough fusion gene map technology to develop companion diagnostic kits and devices to enhance the personalized clinical management of leukemia patients. Specifically, in collaboration with the Lu Daopei Institute of Hematology, a fusion gene map database from over 1,000 patients with leukemia was established, with the results previously published in the Blood Cancer Journal.
Notably, these fusion genes are important genetic abnormalities in leukemia, and by using advanced gene sequencing technology called "Whole Transcriptome Sequencing," multiple previously unknown fusion genes were identified that could potentially establish novel diagnostic and therapeutic targets. Avalon is applying the bioinformatics from the fusion gene map to accelerate the development and commercialization of companion diagnostic kits and devices to enhance personalized clinical management of leukemia patients. ALBT's first diagnostic prototype is expected to enter the clinical study and regulatory filing stage during Q3 of 2023.
Notably, because the fusion gene map technology also provides an unprecedented opportunity to identify and validate fusion gene products as potential novel therapeutic targets, interest from the over 20 ongoing clinical studies to treat forms of leukemia, including those by Pfizer (NYSE: PFE) and Johnson & Johnson (NYSE: JNJ), could strengthen. That would be in addition to providing ALBT with its own opportunities to expand its R&D pipeline and intellectual property portfolio.
There's more to like.
Acquisition In The Crosshairs
Avalon is near closing its acquisition of Laboratory Services, a transformative deal that will add significant revenue and positive cash flow, making the asset immediately accretive to earnings. But more than providing a financial boost, the acquisition adds clinical synergies to the Avalon portfolio, allowing them to leverage both companies' strengths to accelerate growth and expand market interests and share. Those liking to trade ahead of catalysts, ALBT expects to close the transaction this quarter, which puts a catalyst in the near-term crosshairs.
Avalon GloboCare also provides strategic advisory and outsourcing services to fuel clients' growth, assisting in project development designed to enhance competitiveness in targeted healthcare and CellTech industry markets. Further, leveraging its subsidiary structure that integrates unique verticals from innovative R&D to automated bioproduction and accelerated clinical development, Avalon has also established itself as a leading and respected player in cellular immunotherapy (including CAR-T/NK), exosome technology (ACTEX™), and regenerative therapeutics.
Having that ability enables ALBT to advance its scientific and clinical programs more quickly, particularly those focused on immuno-oncology and cellular medicines that address unmet medical needs. Thus, by utilizing innovative technologies that could transform cellular therapy and regenerative medicine, ALBT has positioned itself to monetize its assets faster in ways many may not have expected.
And considering ALBT's focus on treating underserved and unmet conditions, expediting pathways to new revenue streams isn't an overzealous expectation. Focusing there can open doors to fast-track and Orphan designations that can accelerate the pace of trials and expedite approval considerations.
Remember, too, that ALBT isn't taking on its ambitious programs alone. They are advancing research with world-renowned research centers and universities to develop and strengthen the potential of its cutting-edge, proprietary, and innovative focus on bio-process development, the advancement of clinical programs, and product commercialization.
A Strong Case For A Breakout In 2023
Thus, it's not difficult to make a case for ALBT to have a breakout year in 2023. They have cash on hand and have access to more; they are also advancing compelling science, acquiring new assets, and leveraging, in the right way, their NASDAQ listing to attract institutional investment. Those intrinsics combine to make vertically integrated Avalon a leading CellTech bio-developer. And by advancing innovative and transformative immune effector cell therapy, exosome technology, and other cell-therapy-related companion diagnostics, that leadership role can become more established.
Of course, that's their plan. While there is a lot on ALBT's agenda, the best news may be that ALBT is taking advantage of its opportunities synergistically, which does more than enhance a leadership role; it allows them to maximize the potential from near-term value drivers that can help ALBT grow bigger faster.
So, any weakness in ALBT stock may be an opportunity instead of a deterrent. After all, small-cap biotechs often take market corrections on the chin harder than their large-cap brethren. But that's not necessarily bad news for long-term investors. In fact, taking advantage of valuation disconnects can be a preferred way to invest, and at current levels, ALBT may be presenting one to consider.
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