Tony Locantro is a small-cap expert and Champion of Biotech stocks. He recently held a “Biotech Stocks to Watch in 2024” Webinar. Tony rounded up Bio-tech MDs and CEOs from Proteomics, AdAlta, Chimeric and Radiopharm for some fascinating insights. Let’s take a look at some highlights from the presentation. And we take a look at why you should get excited about these Biotech Stocks.
Read on for Tony’s Biotech Stocks to Watch in 2024 or feel free to jump ahead.
2024 Biotech Stocks to Watch
It can be difficult to get excited about Biotech stocks. Reading a press release on Biotech stocks can be difficult as they are loaded with phases, trials, and technical terms. The everyday investor will wonder what any of it means, before going all in on the latest AI or Lithium stock. This is where Tony Locantro comes into the picture. Tony can explain the Biotech stock, why it’s great and deliver that message simply in plain English.
Tony Locantro’s latest Biotech webinar was his best. Although he admits he has had the worst 2 years in his 25-year career as an advisor. He has been “slowly sandpapered to death” in a sector that has been completely smashed. Share prices are “in the toilet” but Tony’s Biotech webinar provided a lot of “sizzle” and hope. There were a lot of reasons to get excited about all four stocks presented on the night.
Let’s take a look and understand why Tony believes these stocks are an “enormous opportunity”. And why they are worth getting excited about.
Disclaimer: Please note that these are not Stock recommendations or personal information. This is an account of the Tony Locantro Biotech stocks for 2024 webinar that was held on November 20, 2023. With some additional research to fill in some blanks on these companies and their products.
1. Proteomics International Laboratories Ltd (ASX: PIQ)
Proteomics is one of Tony’s favorite Biotech stocks and one of the strongest performing. PIQ specializes in using proteins to develop and commercialize diagnostic tests for chronic diseases. They have three fantastic products being developed that will help many people once they are validated and approved for the market.
Proteomics Products and How They Can Help People
- PromarkerD is Proteomics flagship diagnostic test for diabetic kidney disease. It can predict the onset of diabetic kidney disease and future kidney function decline in patients with type 2 diabetes.
- PromarkerEndo is a Blood test to diagnose endometriosis which impacts one in 9 women and can take up to 7-8 years to diagnose. It is currently only diagnosed via invasive surgery.
- PromarkerEso is a test in development for esophageal cancer that impacts one in 20 cancer deaths worldwide. This type of cancer is caused by acid reflux which impacts 1-2% of all males.
Catalysts for the Stock
Diabetes is a global problem and Proteomics are reaching out to markets across the World. They are focused on PromarkerD tests across the US with their Sonic Healthcare USA partnership. This is a fantastic revenue opportunity with the potential to grow. They are also targeting Europe, with a partnership in the UK with NICE (the National Institute for Health and Care Excellence). This is also a big opportunity for PromarkerD.
PromarkerEndo has been working with the Royal Women’s Hospital in Melbourne. The prototype testing so far has been able to diagnose the condition 9 times out of 10. The data was recently presented at an Endometriosis conference in Scotland and it created a lot of excitement. Validation studies are being completed in the US and UK. And Proteomics is looking to capitalize on its relationship with Sonic Healthcare to partner on the product.
PromarketEso, the Esophageal Cancer product is a screening blood test. It would replace endoscopy where cameras are placed down the esophagus and neck to take a biopsy. The current tests are returning results that are 90% accurate. This would provide an amazing alternative to the uncomfortable and painful camera alternative. It is close to being validated in 2024 with the potential for commercialization soon after.
Tony’s Take on Proteomics?
“Proteomics has an outstanding growth story ahead. There are a number of broker reports that have targets in excess of $2. This reflects the value of the test and its potential. PIQ has certainly outperformed the broader biotech market and I’m looking forward to the progress going forward”
2. Adalta (ASX: 1AD)
AdAlta is focused on the development and commercialization of its i-body technology platform to address challenging diseases in fibrosis and immune-oncology. The i-body is a human protein and is engineered for binding or interacting with targets that are causing disease.
AdAlta Products and How They Can Help People
- AD214 will treat fibrotic diseases and focuses on the lungs, kidneys and eyes. This drug could meet a desperate need for new approaches to debilitating diseases.
- Next Generation i-body enabled CAR-T cell cancer therapeutics is a new therapy for Blood cancer patients. A patients immune cells are modified in the lab and then given back to the patient, primed to attack cancer or other diseases. This is a Proof of Concept collaboration with Carina Biotech to develop the product.
Catalysts for the Stock
AdAlta has focused on adding value to AD214 with partnering interest. The company is in great shape with a $10 million market cap, $4 million in the bank and a GE Healthcare Alliance for Collaboration. The valuation is attractive and the potential is great for deal values that are multiples of their current market cap.
Some studies are in place with full results in early 2024 for AD214. These results will answer due diligence questions and will likely increase interest from Big Pharma. There are two parallel partnering streams in play at the moment. AdAlta is quietly confident that they can close one of those partner transactions, and there is a huge sense of excitement within the company.
The Car-T proof of concept, if successful is in a deal space that is replicable with other companies. Published JP Morgan research claims that cell and gene therapy transactions are priced three times higher than average antibody transactions. This is a big opportunity and it it will be a big focus for AdAlta in the future.
Tony’s Take on AdAlta?
“The Biotech sector has been absolutely smashed, and I don’t think it reflects the fundamentals of AdAlta at all. … So I’m of the view that fundamentals will eventually come to the fore. I think these opportunities are some of the best buys in the sector… If you’re prepared to stomach the volatility that we’re currently going through.”
3. Chimeric Therapeutics (ASX: CHM)
Chimeric Therapeutics is a clinical-stage cell therapy company focused on developing cell therapies to not just delay, but cure cancer. The cell therapy transfers intact, live cells into a patient to help lessen or cure a disease. The CAR T cell therapy reprograms a patient’s own T cells in a laboratory to attack specific cancer cells.
Chimeric Products and How They Can Help People
- CHM 1101 is a CAR T Cell Therapy to treat glioblastoma (recurrent brain cancer). The average age of diagnosis is 64 and is more prevalent in males.
- CHM 0201 is a CAR T Cell therapy in Acute Myeloid Leukemia (AML) and Advanced Colorectal Cancer. AML is the most common acute Leukaemia in adults with a median age at diagnosis between 65 and 72 years.
- Chimeric also has various therapies such as NK (Natural Killer) therapies to detect and kill cancer cells. And they have a vast pipeline of innovative cell therapies and platforms in development.
Catalysts for the Stock
Chimeric has clinical milestones lined up for their three programs within the next 12-18 months. There will be various clinical catalysts that are expected to get some attention in this period. The advancement of those trials should see some upward movement in the share price.
There is an opportunity for value realization through some type of collaboration or licensing deal. But in the current market, these are difficult. And generally, they come later as Big Pharma wants to see late-stage clinical data. Chimeric has some great data. They are knocking on doors and having real conversations to realize that value for shareholders.
Clinical data for CHM 1101 exceeded expectations and it is very positive. The trial is going to continue as Chimeric prepare for discussions with the FDA for registration. Next year in 2024, CHM 2101 will get a lot of attention. It recently received IND clearance from the FDA and preclinical work was published in Nature Cancer. This asset is picking up heat and receiving lots of interest from Big Pharma. And it is one to watch closely.
Tony’s Take on Chimeric?
“CHM 2101 knocked out 7 types of cancer with no relapse. The success of Chimeric, value-wise will come from Big Pharma’s affirmation…. And now, if you look at the flip side, this is an amazing opportunity. The stock is trading at a whopping 2.9 cents but it did reach a peak of about 40 cents at one point”
4. Radiopharm Theranostics Ltd (ASX: RAD)
Radiopharm is a clinical stage Radiopharmaceuticals company. It treats oncological diseases such as Pancreatic or Brain Mets cancer using “nuclear medicine”. A radiopharmaceutical is a radioactive drug that is safe and can be used as a diagnostic or therapeutic tool. For therapeutics, patients are given a very small, safe amount of the drug injected into the bloodstream to deliver a radioactive payload to the tumor.
Radiopharm Products and How They Can Help People
- RAD101 is an imaging agent made up of F18 radioisotope and small pivalate, to treat brain metastases. This is a common complication of cancer and the most common type of brain tumor.
- RAD301 is an improved imaging agent used to diagnose pancreatic cancer at earlier stages. This has one of the highest levels of unmet needs among all cancer types.
- RAD 204 is a new therapy for patients with PDL1 Positive NSCLC (Non-small cell lung cancer). This is one of the most common types of lung cancer that carries a poor prognosis for patients.
Catalysts for the Stock
Radiopharm has a deep pipeline of products all in different phases of development. Three assets are positioning to a clinical stage with one asset to begin in 2024. These are considered important inflection points for the company and the share price.
Radiopharm is looking forward to more clinical data to improve confidence in the assets and to help lock in commercial agreements. Discussions with JP Morgan and Big Pharma are ongoing. Many partners are very interested due to early signs of efficacy and confidence in the technology.
The jewel in the crown for Radiopharm could be RAD 301, an imaging agent for pancreatic cancer. Unfortunately, a pancreatic cancer diagnosis will see your life expectancy go down significantly. RAD 301 has started a phase one study. And they are looking for an accelerated process to bring these products to market.
Tony’s Take on Radiopharm?
“…If you buy Radiopharm at around seven cents and it goes to 10 and you think you’re a genius, but that is just the start of the journey. We’re in a chronic, low-price share environment and there are very exciting opportunities ahead with a number of trials in the pipeline.”
Final Thoughts
Tony Locantro will openly tell you the last two years have been absolutely shocking. And at the moment there haven’t been too many signs of a turnaround in the biotech sector. But what has opened up is some of the best buying opportunities Tony has ever seen. Hopefully, you will agree with the sentiment after reading some of the insights above.
You can find Tony Locantro on his new website, tonylocantro.com. While you’re there. sign up for his newsletter and receive future insights and potential special event invitations in the future. Tony Locantro is an insightful and entertaining resource for those looking outside the usual tech stocks. I’ve said it before and I’ll say it again, Tony is a bit of a legend.
M. Moneyman
