Most of the time, a budding company eases into its success, starting small, and then working its way into a successful status. Other times - though less often - a company flips a switch, and for all intents and purposes is turned "on", and immediately begin to reward investors. TNI Biotech Inc. (OTCMKTS:TNIB) just flipped its switch to the "on" position.
It may not be a household name (at least not yet), but TNIB may build a name for itself sooner than later, here in the United States as well as abroad. The biotech outfit's claim to fame is a diversified immunotherapy that is effective at treating everything from cancer to HIV to autoimmune diseases.
It may sound too good to be true, but it isn't. The drugs TNI Biotech Inc. is developing are designed to induce an immune response from an individual, which in the grand scheme of things is the best and first-choice way to fight any disease; a patient's own immune system, if properly prompted, is more effective than any antibiotic or cancer treatment that could be injected or dosed.
The key and since to this fairly universal approach of treating diseases is Low Dose Naltrexone (or LDN) and methionine enkephalin (or MENK). They each have the ability to boost or restore the immune system by increasing the T and NK cells in the body, thereby activating its own natural defenses that haven't been fully activated - or activated at all - in order to fight several major ailments. TNI Biotech's research to date has shown each approach has solid efficacy, and the company has turned the technology into three specific drug candidates. One of them is IRT-103, or Lodonal... a play on the term "Low Dose Naltrexone."
That drug changed everything for the company and its investors today. Via the inking of a distribution agreement with Nigerian company AHAR Pharma, Lodonal is going to be marketed in AHAR's market, generating TNI Biotech's first-ever revenue.
What's so amazing about the announcement isn't that TNIB just became a very real biotech company. What's amazing is the size of the financial commitment AHAR Pharma has made to TNI Biotech for the rights to promote Lodonal.
All told, this partnership will guarantee TNIB more than $50 million in gross revenue next year. That's $50 more than the company will make this year, and $50 million more than this pre-revenue company has ever made. Yes, this is a huge deal for the formerly pre-revenue company.
Ever more compelling than that is how the AHAR deal is completely separate from the drug's revenue opportunity in the United States. Lodonal is ready to enter Phase 3 trials in the United States, and once the FDA responds to the company's planned trial protocols, can begin those trials here in North America. This testing should begin in 2014, and thanks to the AHAR deal will be well funded.
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As for the ultimate potential here - not just for Lodonal but its other two drugs in the pipeline - the HIV/AIDS testing and treatment market is estimated to be worth $14 billion per year, the global oncology market is worth approximately $60 billion per year, and he autoimmune disease market (which includes several ailments) is worth about $44 billion on an annual basis. Combined, the company is working its way into position to enter arenas worth a total of more than $100 billion per year. Even a tiny fraction of that market would be a windfall for TNI Biotech and its shareholders.
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