In some markets, companies rate an investment a “buy” when it meets a generally accepted set of parameters. In a certain sense, this method of investing in a market reduces risk to a proven and generally accepted formula. Every now and again, however, a new process comes along that may alter this generally accepted strategy. If an investor can find a company that may have something new in its research pipeline, they may want to look closer and consider breaking this strategy for a shot at a nice profit.
Micromet Inc., a development stage biopharmaceuticals company, works to develop and market pharmaceuticals directed at cancer, inflammation and autoimmune disease. Each of the company’s current pipeline products are in phase II or clinical/pre-clinical approvals and trials. Each has marketing rights assigned to major marketing and distribution companies.
The company is primarily working in the clinical and pre-clinical stages of development for products directed at: non-Hodgkin’s lymphoma, cancer, breast cancer, solid tumors, inflammation and melanoma. Although a majority of its development products are in pre-clinical and clinical approval/testing stages, it does have two products in Phase II trials – directed at leukemia and breast cancer (breast cancer product has completed Phase II.) The leukemia product has been assigned to Astra Zeneca for marketing and distribution while the company’s breast cancer product has been signed to Merck.
The company’s progress with its phase II trials should lead to solid revenues in the fairly near future. It is, however, the company’s antibody platform work that may hold the better opportunity for solid revenue gains. The BiTE antibodies platform, currently in trials, appears to be a possible advance for many cancer solutions. The antibodies platform works as a mediator between T cells and the specific targeted tumor, allowing the entry of specific proteins (generalization) into targeted tumors selected for tumor cell destruction. If this particular platform can demonstrate reliability and safety, a major source of revenue is more than likely for the company.
Most biopharmaceutical companies are looked at for investment opportunity as their pipelines reach the end of Phase III testing and approvals. Micromet may just be an exception to the rule as it has assigned products to marketing and distribution agreements while working with a platform that has large potential. In any event, there does appear to be long-term profit potential with the work that Micromet has done and continues to do.
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