CardioVascular Biotherapeutics Inc. (CVBT.OB) Finds Significant Private Funding for Topical Diabetic Wound Care RolloutFriday, October 17th, 2008
Investing in the pharmaceutical world means trying to invest as a product gets closer to completing FDA trials and approvals. In many respects, this is a wise strategy as a negative review by the FDA can kill a drug and its sponsor right along with it. From another point of view, taking the longer term view and dictating return terms can be a better way of investing if the product and company seem to be moving in the right direction. Generally, this could be thought of as the next quarter syndrome versus the next year(s) reward concept. The first concept got the economy where it is today. The second can hold hope for a larger more controlled return.
CardioVascular Biotherapeutics Inc., a biopharmaceutical company, works to develop medications for sever cardiac and wound care conditions. The company is currently beginning Phase II trials for its lead product and continues development in clinical trials for three additional products directed at wound care.
By all accounts, the company is making significant progress with its trials and testing. It is currently starting Phase II – severe coronary heart disease – trials for its Fibrobalst 1 (FGF-1 141) product. Although the protein based product is envisioned for increasing blood flow in heart blood vessels, it is thought that other organs will be able to take advantage of its effects as well. The company has been finding excellent successes for several of its wound care drugs as well. The topical protein based treatments have been privately funded to a minimum of $3 million and could reach a maximum of $18 million as warranted.
As one might suspect, the company is focusing on the Phase II trials of its coronary protein product, as it is closer to market. The company’s three other products, however, may offer a wider spectrum of user and the potential for longer term returns. Diabetic wound care and various other stasis leg wound issues are a very large market as it is, and have expectation of accelerated growth in the long term. The cardiac product will likely provide solid revenues, but it may work out that over the longer term per patient revenue will tilt toward the wound care product.
Derma Life, the current leading funder of the wound care product clinical trials, appears to be viewing the longer term in its investment choices and may benefit. If other investors do the same, they may also be on a straight line to profit when the products make it to market.
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