Cancer Drug Company Panbela Therapeutics (PBLA) Stock Looking To Soar In 2024
A red hot end to 2023 due to ongoing good news has the penny stock poised for a possible takeoff in the new year
Penny stocks can literally be a dime a dozen. Most typically they are companies attempting and hoping to gain relevance within their respective market despite facing steep odds that always greet such ventures. However, not all fail, and some do go on to establish themselves as successes. One reaching the precipice of likely knowing what their fate will be is Panbela Therapeutics, Inc. (PBLA), which is hoping to have new cancer drug treatments on the market in the coming months.
Panbela describes itself on their website as a:
“Clinical-stage biopharmaceutical company developing disruptive therapeutics for urgent unmet medical needs. The objective of Panbela’s pipeline is the utilization of pharmacotherapies to reduce/normalize increased disease-associated polyamines using complementary pharmacotherapies. The company’s lead assets are ivospemin (SBP-101), CPP-1X, utilized alone or in combination with Sulindac (Flynpovi™) which provide a multi-targeted approach to reset dysregulated biology present in many types of diseases such as cancer and autoimmunity. These agents target the polyamine pathway at complementary junctions which have been shown to be altered is disease. In particular, our lead assets have the potential to suppress and prevent tumor growth, enhance anti-tumor activity of other anti-cancer agents, and modulate the immune system.”
They currently have a number of irons in the fire with their development of new drug therapies, ranging from pre-clinical stages to those in the late stages; including work with children’s cancer treatments. Furthermore:
“Late-stage programs are orphan oncology related: pancreatic cancer and FAP (familial adenomatous polyposis). In pancreatic cancer, the ASPIRE trial, a Global Randomized Double-Blind Placebo Controlled Trial of SBP-101 with gemcitabine and nab-paclitaxel in patients previously untreated for metastatic pancreatic ductal adenocarcinoma is open with a target of 60–80 sites.”
In particular, Panbela’s work in developing treatments for pancreatic cancer appear the most promising. At the end of this past November, the Data Safety Monitoring Board (DSMB) of the Phase 3 ASPIRE clinical trial for patients with untreated metastatic pancreatic ductal adenocarcinoma completed a safety review of the 214 patients in the trial. Following their examination, they recommended that the study proceed without modification.
On December 18th, the company made another announcement that brought early holiday cheer to their investors:
“Panbela Therapeutics, Inc. (Nasdaq: PBLA), a clinical stage company developing disruptive therapeutics for the treatment of patients with urgent unmet medical needs, today announced that US WorldMeds®1 (USWM), a Kentucky-based specialty pharmaceutical company to whom it divested certain assets in its eflornithine pediatric neuroblastoma program, received FDA approval of its New Drug Application (NDA) for the use of eflornithine as a maintenance therapy for high-risk neuroblastoma patients who have achieved at least a partial response to certain prior therapies.
“The approval of USWM’s NDA for the use of eflornithine for the treatment of patients with high-risk neuroblastoma marks the first FDA approval of an NDA for any polyamine targeted therapy in a cancer indication.”
Although Panbela sold some assets for $9.5 million in their eflornithine pediatric neuroblastoma program, they are set to receive payments once certain benchmarks connected to the drug’s development, approval and sales are met.
The recent good news for the company is in contrast to them having experiences significant struggles leading up to this. They completed two reverse splits in 2023 (1-for-40 in January and another 1-for-30 in June) to boost the price by 1,200 in an attempt to get their stock in compliance of the Nasdaq expectation that it maintain a price of $1.
Their 2023 Q3 earnings report also showed that their recent good news has come at a very good time:
“General and administrative expenses were $1.1 million in the third quarter of 2023, compared to $1.3 million in the third quarter of 2022. The change is primarily due to decreased legal and financial services costs.
“Research and development expenses were $6.7 million in the third quarter of 2023, compared to $2.3 million in the third quarter of 2022. The increase is primarily due to the cost of approximately $3.2 million or approximately 6 months’ supply of Abraxane, a standard of care drug, used in the ASPIRE clinical trial and first made available to the clinical sites during the three months ended September 30, 2023. The remaining increase is associated with other ASPIRE clinical trial costs.
“Net loss in the third quarter of 2023 was $7.8 million, or $2.69 per diluted share, compared to a net loss of $4.4 million, or $257.36 per diluted share, in the third quarter of 2022. All share and per share amounts have been restated for two reverse stock splits which occurred in the nine months ended September 30, 2023.
“Total cash was $0.9 million as of September 30, 2023. Total current assets were $1.9 million and current liabilities were $8.9 million as of the same date.”
Showing the volatility that is rampant in pharmaceuticals, Panbela bounced back to have an amazing end of 2023. After reaching a low share price of $0.45, including hovering around $0.50 around Thanksgiving, the recent good news has helped it roar back to its current level of $0.92 in the few weeks since.
Analysts have begun jumping on board the PBLA train given their onslaught of positive developments. According to TipRanks, there have been two assessments published in the past few weeks (one from RothMKM and the other from H.C. Wainwright) that both have marked the stock as a Buy. Incredibly, the average of their 12-month forecasts for the company is $20.50 (One predicted a 12-month price of $16.00 and the other came in at $25.00), which would be a 2,140% upside if reached.
Panbela’s future is still predicated on their drugs finishing successful paths to the market and patients. However, they are nearing the finish line, helping bring things into clearer focus. Although the continued positivity for this company would benefit investors, the real winners will be those sick with cancer because of their ability to be treated with new and cutting edge therapies.