NEW YORK, NY / ACCESSWIRE / February 16, 2017 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has issued an update note on M Pharmaceutical, Inc. (CSX: MQ; OTCQB: MPHMF).
The report is available here: MQ February 2017 Update Note.
M Pharmaceutical, Inc. ("M Pharma", CSX: MQ, OTCQB: MPHMF, FWB:T3F2), is a biomedical company focused on addressing unmet needs for obesity and female health. M Pharma has undergone a sweeping change over the last six months. The company completed a strategic review of its diabetes and obesity pipeline candidates, electing to focus on C-103 and Trimeo, while adding a new end market with the January announcement that it would acquire 40Js LLC. Following these moves, the company is now focused on bringing to market solutions intended to improve the health and quality of life for people suffering from obesity, and a new slate of products targeting improved female sexual health and well being. We expect continued updates from M Pharma in coming months as it seeks to close the 40Js deal while advancing its pipeline.
Announced Deal to Acquire 40Js LLC Reshapes Pipeline
On January 4, 2017, M Pharma announced that it would acquire Cincinnati, OH-based research and development company, 40Js LLC. 40Js specializes in developing candidates for women's health, including for sexual dysfunction, sexual arousal and fertility. Terms of the deal include the issuance of 80mn new shares and a cash payment of C$1.5mn, pending approvals and due diligence completion. Assuming the deal closes as expected, M Pharma's pipeline will now be focused on two verticals: obesity and female health and wellness.
40Js Focused on Female Health and Wellness
40Js products are led by an OTC topical formulation of L-Arginine, menthol and other ingredients, which is intended to address female sexual dysfunction and increase arousal. According to management this product does have international sales. These international sales would potentially provide a modest income stream to M Pharma after the acquisition, which could be deployed to help advance its other clinical initiatives. The plan for 40Js sexual dysfunction product development in the US, however, would be to develop and introduce a paraben-free formulation that is local and non-toxic, and does not affect the central nervous system. Management believes this will improve the chances of FDA clearance and also provide differentiation in the market as the medical community is looking for safe alternatives to existing treatment methods. The move to acquire 40Js is an expansion from an earlier announcement that the company would acquire fertility treatment ToConceive, which the company stated was a natural conception lubricant, which is applied topically to support sperm survival and capacitation.
C-103 to Drive Obesity Line
M Pharma also provided an update to its strategy for developing and commercializing obesity products. While the company will continue to develop Trimeo, we expect the near-term to be focused on advancing C-103 in OTC and prescription strength formulations. C-103 is a reformulation of Orlistat, an FDA approved medication for weight loss sold by Roche (prescription Xenical® 120mg capsules) and in Glaxo Smith Kline (OTC Alli® 60mg capsules). C-103 represents a large potential opportunity for M Pharma as Orlistat has been shown to be an effective weight loss medication that had peak sales of $900mn in 2007, before sales declined due to well-publicized, embarrassing side effects. The C-103 reformulation aimsto match Orlistat's efficacy without these side effects, and management believes C-103 is also differentiated in the market in that it does not affect the central nervous system.
Updating Target to CAD $0.55 for M Pharma
We are updating our price target to reflect 150mn diluted shares following the acquisition of C-103. We view M Pharma as an intriguing high risk / high reward investment targeting a large and growing segment of the healthcare industry.
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About M Pharmaceutical, Inc.
Formed in early 2015, M Pharmaceutical Inc. is a clinical-stage company developing innovative technologies for obesity and weight management. In addition to the intended acquisition of C-103 from Chelatexx, LLC, the Company will focus on the development of its Trimeo capsules, temporary controllable pseudobezoars for non-invasive gastric volume reduction for the treatment of obesity, for which it has exclusive rights.
M Pharmaceutical trades on the Canadian Securities Exchange (CSE) under the ticker symbol "MQ" as well as on the OTCQB as "MPHMF" and FWB (Frankfurt Stock Exchange) as "T3F2."
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