Japan's nuclear crisis has put Cleveland BioLabs lead drug, known as CBLB502, in the spotlight as the risks of a catastrophe are grave and growing with the effects of a nuclear meltdown. Although the company's radiation treatment is still in development, it has been fast-tracked by U.S. FDA and is expected to be approved in the U.S. in late 2012 or early 2013. CBLB502 has also been granted orphan status and is estimated to be years ahead of a drug being developed by Onconova called Ex-RAD.
Joe Salvani, an authority in biotechnology who began his career on Wall Street as Senior Vice President and Chemical Industry Analyst at Goldman Sachs, discussed the significance of Cleveland BioLabs drug as a radiation antidote and the near-term outlook for the company in an interview with Executive Video that can be watched here.
"Given the recent potential nuclear plant melt down at the Daiichi nuclear power plant in Fukushima, Japan, it is my belief that Cleveland BioLabs will receive emergency use authorization from the appropriate US Governmental entities to allow the company to donate thousands of doses of CBLB502 to the Japanese authorities," said Mr. Salvani.
CBLB502 has proven to be safe in over 150 human beings and extremely efficacious as a radiation antidote in nearly 1,000 primates in testing. Given the state of emergency in Japan, it's possible that CBLB502 is the only drug that could help the Japanese security forces and power plant workers as they continue to either contain or clean up the six nuclear cores at the affected power plant. The clean-up effort is expected to take at least 12 months.
Mr. Salvani also anticipates that the Japanese will buy hundreds of thousands of doses at $800 a dose, which alone could result in $50 - $100 million in revenue for the company.
Joe concludes by saying, "The world is fortunate to have Cleveland BioLabs' drug this close to approval. The drug was designed exactly for emergencies such as this. If the Emergency Use Authorization is granted, the stock could reach well over $20 per share."
Serendip - I only left out two other scenarios regarding your question:
Maybe you had bought but sold.
You are concerned that your precious SIGA stock, possibly will take a "back seat" to CBLI with BARDA. SIGA is a great stock but I have seen where it has blinded your judgment of other stocks and their shareholders. GL
I did a little DD and look what I found: The guy who wrote the Ex-Rad article that is floating all over the net is the chairman for American Defense International, a private defense consultant firm, who, by the way, and to no surprise, has Onconova as a client. A little biased would you say?
Van D. Hipp Jr. is chairman of American Defense International, Inc., a Washington, D.C.-based consulting firm specializing in government affairs, business development and public relations.
ADI website: http://www.americandefense.net/clients.html