GREEN PLANET MICROCAPS
ESG MICROCAP SPECIALISTS
Our treasure chest is filled with inspiring young companies that have innovative solutions to address a clean, low-carbon environment and to provide disruptive technologies to make life better
TOMORROW'S WINNERS TODAY
GROUNDBREAKING CANCER TREATMENT
A CONSIDERATION FOR FAMILY OFFICE PORTFOLIOS
Strong Data from NIH Sponsored Clinical Trial Suggests Ropidoxuridine Could be Major Advancement for Cancer Patients and Big Win for Shuttle Pharmaceuticals’ Shareholders
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An estimated $7 billion was spent on Radiation Therapy (RT) in 2023 to treat cancer and is expected to increase to $11 billion in 2032 but its dosage and efficacy are capped or limited by the potential damage radiation poses to adjacent healthy tissue.
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An NIH-sponsored clinical trial demonstrated that Iododoxuridine (Ropidoxuridine is prodrug) made cancer cells more sensitive to radiation and extended median survival by close to 60% but had serious obstacles for widespread use.
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Shuttle Pharmaceuticals manufactured a new drug and an Orphan Drug application was approved by the FDA. Ropidoxuridine is a prodrug of iododoxuridine. After Ropidoxuridine is delivered orally, it is metabolized as iododoxuridine that overcomes these obstacles.
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Shuttle Pharmaceuticals announced new financing and commenced enrollment for its Phase 2 clinical trial of Ropidoxuridine.
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If current and future trial results continue to perform as they have in the past, Ropidoxuridine could become a windfall for cancer patients and for Shuttle shareholders.
Investors searching for their next top performer are invited to look at Shuttle Pharmaceuticals Holdings, Inc. (Nasdaq: SHPH). A close look reveals that Shuttle has the attributes of a winner.
Shuttle Pharmaceuticals is developing what a previous NIH-sponsored clinical trial demonstrated to be a remarkably effective drug that enhances radiation therapy to treat cancer. The drug used in that trial was iododoxuridine which has some serious obstacles.
Iododoxuridine impressed drugmakers with a remarkable extension of median survival by close to 60% for Glioblastoma Multiforme and anaplastic astrocytoma patients. Unfortunately, delivery of iododoxuridine is challenging because it must be delivered through a very inconvenient IV for several days or weeks in succession prior to radiation treatment. This also subjects patients to increased risk of impaired drug delivery and infections.
Shuttle’s drug, Ropidoxuridine, is the prodrug for iododoxurdine that is delivered orally rather than through IV which eliminates the inconveniences of successive IV and also reduces risk of infection.
After Ropidoxuridine is delivered orally to the patient, it is metabolized as iododoxuridine, incorporates into DNA, and enhances radiation therapy, making the cancer cells more sensitive to radiation.
Positive Recent Shuttle Update
A recent announcement from Shuttle Pharmaceuticals was filled with a plethora of positive news putting everyone on notice that this underfollowed and undervalued biotech play is progressing rapidly and solidly.
Shuttle Pharma’s recent highlights include the following:
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Successfully dosed first three patients in the Phase 2 clinical trial of Ropidoxuridine for the treatment of patients with brain tumors (glioblastoma). Ropidoxuridine is Shuttle Pharma's lead candidate radiation sensitizer for use in combination with RT to treat glioblastoma, a deadly malignancy of the brain with no known cure. Additional patients are currently undergoing screening for enrollment in the trial.
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Finalized agreements with all six of the planned site enrollment locations which will be administering the Phase 2 clinical trial following the Company’s entry into agreements with Georgetown University Medical Center and UNC Medical Center. The Company previously entered agreements with the UVA Cancer Center, John Theurer Cancer Center at Hackensack University Medical Center, Allegheny Health Network (AHN) Cancer Institute, and Miami Cancer Institute, part of Baptist Health South Florida.
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Paid off the entirety of the outstanding balance due under Shuttle Pharma’s Senior Secured Convertible Note issued on January 11, 2023. The initial balance of the Note was $4.3 million and was originally repayable over a 26-month period ending March 11, 2025.
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Completed a $4.5 million public offering priced At-The-Market under Nasdaq rules. The Company intends to use the net proceeds from this offering to fund IND-enabling and Phase 1 and 2 clinical trials of product candidates, including payments that will be made to the clinical research organization supporting the Phase 2 clinical trial for Ropidoxuridine, and for working capital and general corporate purposes.
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The Company also closed on a convertible note and warrant offering, receiving a total of $790,000 in gross proceeds, including $237,500 invested by the Company’s Chief Executive Officer, Dr. Anatoly Dritschilo.
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Cash balance as of October 31, 2024 was $4.1 million.
“We made tremendous progress over the past few months to advance our Phase 2 clinical trial of Ropidoxuridine for the treatment of patients with glioblastoma, with the first three patients dosed in October 2024,” stated Shuttle Pharma’s Chairman and CEO, Anatoly Dritschilo, M.D. “The initial patient dosing followed the successful engagement of all six of the planned clinical trial site locations, each of which are nationally recognized cancer centers that are most likely to treat IDH wild-type, methylation negative glioblastoma patients – the target of the clinical trial. The initiation of the Phase 2 trial is a significant milestone for both Shuttle Pharma and the thousands of patients with brain tumors who currently lack effective therapies.”
“Beyond these critical clinical developments, we also made progress in improving our balance sheet and funding the Phase 2 clinical trial. I want to thank all of the investors who have committed to helping us advance our mission to leverage radiation sensitizers to increase cancer cure rates, prolong patient survival and improve quality of life for patients suffering from glioblastoma,” Dr. Dritschilo concluded.
Why I Believe Shuttle is Underfollowed
In spite of all the positive news, Shuttle Pharma has been underfollowed for over a year when measured by trading volume which is exceptionally light for a drug that has the potential for blockbuster sales. For the past year, Shuttle has also been underfollowed when measured by very low messaging activity on message boards. This is about to change however, because Shuttle is now taking steps to promote its very exciting story. Based on decades of experience in the markets, I believe Shuttle shares are exceptionally undervalued when considering the strong evidence suggesting a breakthrough in radiation therapy, Shuttle’s seasoned and expert management, and the strong financials for a young company that is already enrolling patients in a phase 2 clinical trial.
Why I believe Shuttle Shares are Undervalued
With a very small 3.66 million shares outstanding and a market cap of only $2.75 million, Shuttle is extraordinarily undervalued. It should also be noted that Shuttle showed $4.1 million in cash on hand as of October 31, 2024, which is more than the entire market cap.
A report in the NIH National Library of Medicine titled, “Valuation and Returns of Drug Development Companies: Lessons for Bioentrepreneurs and Investors” states that the mean valuation of biopharmaceutical companies with Phase 2 therapeutics is $683 million. Using this metric, with 3.66 million shares outstanding, Shuttle should command a share price of $186.61/share. Today, Shuttle shares are trading below 80 cents, down from a high of $4.95 in the previous 12 months.
Reasons for Shuttle Shares Being Undervalued?
There is more than one reason for Shuttle’s radical undervaluation. First, the overall market conditions for microcap stocks have been the worst I have ever seen in 50 years. Big caps, mid caps, and small caps are doing well on average, but microcaps have been in a full-fledged depression. There are signs however, that rotation may be beginning where money could flow from overpriced higher-priced stocks into lower priced underperforming stocks where greater value can be found. If this holds true, then 2025 could be an interesting year for badly beaten microcaps such as Shuttle.
Second, investor visibility has been low but is finally beginning to increase with new efforts just starting in the past few months to promote the exciting Shuttle story.
Making matters even worse, some hedge funds profit by selling shares short naked, a trading strategy aimed at driving down prices even further. Close examination of the trading pattern for Shuttle reveals there may be heavy short selling whenever there is heavy volume buying at higher prices and the price just locks in at a set price and suddenly there is an impenetrable wall of stock that puts a lid on the share price. When the heavy buying stops, the price falls. But the illegal act of “spoofing” exacerbates the fall because the naked short sellers place huge fake sell orders at limited prices that they know will not be bought because huge sell orders tend to scare off buyers and send the price even lower. I believe there is evidence of illegal spoofing in Shuttle’s trading. After a 1-for-8 reverse stock split, and knowing with 100% certainty that there are no Shuttle shareholders (other than Shuttle’s founders) with large positions over 100,000 or 200,000 shares, it appears to be a clear case of spoofing when a sell order for one million shares is offered in the market. It appears to me that consistent spoofing is obvious in Shuttle and could catch the attention of regulators or even a large savvy investor who knows how to trap the shorts in a short squeeze. See strong evidence of spoofing below showing an offer to sell 989,400 shares at $1.18 per share.
Depressed Markets, Short Selling and Spoofing Cause Low Prices but they Also Create Opportunity
The formula for making money has never changed. Buy low and sell high!
Experienced investors discovering Shuttle will applaud Shuttle’s exceptionally low share price when they see the potential and the low share price.
If all goes as planned, the exceptionally low share price offers the opportunity for much larger percentage gains.
Shuttle Pharmaceuticals Holdings Management
Management of Shuttle Pharmaceuticals Holdings is highly experienced and considered leading experts in radiation therapy for cancer treatment, drug development, and regulatory affairs.
Shuttle Pharmaceuticals Financial Condition
Shuttle Pharmaceuticals Holdings’ Edgar filing for the quarter ending 9-30-24 was dramatically improved when the company recently reported strong financials with senior convertible debt being paid off in full, the successful completion of a $4.5 million capital raise, and over $4 million in cash in the bank and greatly reduced debt.
It is also significant to note that Shuttle has a history of demonstrating the ability to raise capital when needed. Click on image below.
Risk Factors
I have found in my stock market career of over 50 years that the greatest risk factors in biotech are the ability to raise capital and clinical trial outcomes.
To date, Shuttle Pharmaceuticals has demonstrated the ability to raise capital when needed, even in a tough funding environment like today, and has based its future on strong data from previous clinical trials, with the current Phase 2 trials just getting started.
Investors are always encouraged to delve into regulatory filings and press releases.
Conclusion
Compelling past trial results for Shuttle’s Ropidoxuridine (iododoxuridine), commencement of the Phase 2 clinical trials, and the recent successful capital raise activity suggest higher prices for Shuttle’s shares in the not-too-distant future. Shares appear deeply undervalued today, which offer the potential for leveraged percentage gains.
Shuttle has only recently begun to tell their story to the investor world, and I am confident it will help build a larger shareholder base as time unfolds.
Shuttle’s Ropidoxuridine (iododoxuridine) has demonstrated in an NIH-sponsored clinical trial the ability to extend median survival rates by close to 60%. If the current P2 clinical trial succeeds like the first trial, Ropidoxuridine would have the potential to become a standard of care for solid tumor cancers which would have a major impact on the valuation of Shuttle shares and would be of exceptional value to cancer patients and their families.
Legal Disclaimer & Disclosure
This report/article has been prepared for informational purposes only and is sponsored and paid for by Shuttle Pharmaceuticals Holdings, Inc. The views and opinions expressed herein are those of the author(s) and do not necessarily reflect the views of Shuttle Pharmaceuticals Holdings, Inc. or any of its affiliated entities.
Investment Risk Disclosure:
This report is not intended to provide personalized investment advice and should not be construed as an offer to buy or sell securities or other financial products. Investing in financial markets involves significant risk, including the potential loss of principal. Past performance is not indicative of future results. Readers should consult with a qualified financial advisor before making any investment decisions.
Readers are cautioned not to rely on the information contained herein and to use such information only as a starting point for doing any additional independent research into Shuttle Pharmaceuticals, including reviewing Shuttle’s risk factor disclosures set forth in its annual report on Form 10-K and other SEC filings, which may be reviewed at www.sec.gov.
Compensation Disclosure:
Richard Cavalli has been compensated by Shuttle Pharmaceuticals Holdings, Inc. in connection with the publication of this report. The compensation received may influence the content, but all information provided is believed to be accurate and reliable as of the time of publication. However, no guarantees or warranties are made regarding the accuracy or completeness of the information presented.
Forward-Looking Statements:
This report may contain forward-looking statements, including but not limited to projections of future financial performance, strategies, clinical trial outcomes and/or likelihood of success, and market trends. Such forward-looking statements are those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “estimates,” “believes,” “understands,” “potential” or “projected.” These statements are based on current expectations and assumptions, and actual results may differ materially due to various factors, including market conditions, economic factors, and other risks. Forward-looking statements are only predictions, the results associated with the predictions may not occur, and the reader is cautioned not to rely on these forward-looking statements. By reading this report, you acknowledge and agree to the terms of this disclaimer and understand the risks involved in any investment decisions you may make.