NEW YORK, NY / ACCESSWIRE / May 23, 2018 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Amarantus Bioscience Holdings, Inc. (OTC PINK: AMBS).
The report is available here: AMBS May 2018 Update Note.
Based in San Francisco, CA, Amarantus Bioscience Holdings, Inc. (OTC PINK: AMBS, "Amarantus") is a biotechnology company developing treatments and diagnostics for diseases in orphan neurologic, regenerative medicine and ophthalmic therapies, through three wholly-owned subsidiary companies. The company's Elto Pharma subsidiary has development rights to eltoprazine, a Phase 2b-ready small molecule indicated for Parkinson's disease levodopa-induced dyskinesia (PD-LID), Alzheimer's aggression and adult ADHD. Amarantus has also acquired the rights to the Engineered Skin Substitute program (ESS), a Phase 3 ready regenerative medicine-based approach for treating severe burns with full-thickness autologous skin grown in tissue culture, which is being pursued by its subsidiary Cutanogen Corporation. Amarantus' subsidiary MANF Therapeutics, Inc. is developing pre-clinical products as treatments for brain and ophthalmic disorders, which were discovered by CEO John Commissiong, Ph.D. using its proprietary discovery engine PhenoGuard. AMBS also owns in excess of 110mn shares of Avant Diagnostics, Inc. (AVDX) via a deal to reacquire assets.
Highlights from the note include:
Amarantus recently provided an update on its business activities on May 11, 2018, which included an overview of the company's strategy and progress made formulating its plan to create and monetize four subsidiary companies. Highlights of recent activities include:
- Amarantus will initially seek to realize value for its Elto Pharma and Cutanogen subsidiaries. Management views Elto Pharma's Phase 2, small molecule candidate eltoprazine as the most valuable asset in the company, Originally developed by Solvay (now Abbvie) for aggression-related indications, eltoprazine has a strong safety record, and an Orphan Designation for PD-LID. Moreover, eltoprazine offers a broader opportunity to target several multi-billion dollar markets, including: Parkinson's Disease ($2bn), Agitation in Alzheimer's Disease ($3bn) and ADHD - Adult and Pediatric ($1bn). The company is planning an IPO / spinoff for Elto Pharma in order to raise capital to advance clinical progress for eltopraine and more efficiently realize value for this key asset.
- AMBS files 2017 10K, 1Q18 10Q, retains Weild & Co. We also note that AMBS has been able to make progress catching up on its SEC filings. AMBS filed its 2017 10-K on April 18, 2018, reporting a net loss of $4.4mn in 2017, and filed 1Q18 10Q on May 21, 2018. The company recently brought in Barney Monte as interim CFO / COO to assist to assist in completing the company's restructuring plan and concurrent capital raise via regulations created under JOBS Act. We were pleased to see the company file its 2017 annual report in a timely manner and note the company announced that it had engaged Weild & Co. to advise Amarantus for planned capital raises using mechanisms created under the JOBS Act.
No change to target at this time
We recently updated the price target for AMBS to $0.65 following based on the potential value from advancing candidates at Elto Pharma and Cutanogen, taking into consideration the liabilities at the AMBS level. We see the AMBS as a high risk, high potential reward company emerging from distressed status. We would look to re-evaluate the target and valuation following additional details and timing for any such strategic transaction.
Please review important disclosures in the report and on our website at www.seethruequity.com.
About Amarantus Bioscience Holdings, Inc.
Amarantus Bioscience Holdings (AMBS) is a biotechnology company developing treatments and diagnostics for diseases in the areas of neurology, regenerative medicine and orphan diseases through its subsidiaries. AMBS' wholly-owned subsidiary Elto Pharma, Inc. has development rights to eltoprazine, a Phase 2b-ready small molecule indicated for Parkinson's disease levodopa-induced dyskinesia, Alzheimer's aggression and adult ADHD. AMBS acquired the rights to the Engineered Skin Substitute program (ESS), a regenerative medicine-based approach for treating severe burns with full-thickness autologous skin grown in tissue culture that is being pursued by AMBS' wholly-owned subsidiary Cutanogen Corporation. AMBS' wholly-owned subsidiary MANF Therapeutics, Inc. owns key intellectual property rights and licenses from a number of prominent universities related to the development of the therapeutic protein known as mesencephalic astrocyte-derived neurotrophic factor (MANF). MANF Therapeutics, Inc. is developing MANF-based products as treatments for brain and ophthalmic disorders. MANF was discovered by the Company's Chief Scientific Officer John Commissiong, PhD. Dr. Commissiong discovered MANF from AMBS' proprietary discovery engine PhenoGuard. AMBS also owns approximately 80 million shares of Avant Diagnostics, Inc. via the sale of its wholly-owned subsidiary Amarantus Diagnostics, Inc. that occurred in May 2016. www.Amarantus.com.
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