Actinium Pharmaceuticals (NYSEMKT:ATNM) is a development stage biotechnology company currently advancing its pipeline of cancer targeted therapies utilizing the company's Alpha Particle Immunotherapy Technology Platform. Since the company's initial public offering earlier this year, investors have seen a 350% return on their investment thus far currently. Yet with a total pipeline addressing markets worth north of $18B and a market cap valuation of only $127M, there appears to be a lot more room to run for this emerging immunotherapy company.
The key to Actinium's technology platform is its utilization of alpha radio isotopes which are reported as being the most potent cancer killing agents in existence. This technology was originally discovered at Memorial Sloan Kettering Cancer Center and the Fred Hutchison Cancer Center prior to being licensed to Actinium for commercialization. The clinical data revealed thus far on the company's most advanced therapy Iomab™-B has shown dramatic results in comparison to the current standard of care for its targeted indication of Acute Myeloid Leukemia (AML).
Click to enlargeRevealed in the data above are clinical results showing Iomab™-B's 300% greater efficacy at extending 1 year survival in comparison to Chemotherapy and HSCT for patients over 50. Likewise, the company's therapy showed a 29% 2 year survival in this same indication in comparison to the 0% 2 year survival results from its standard of care competitors.
In terms of Actinium's Iomab™-B candidate market potential, the targeted indication for Bone Marrow Transplant is currently the fastest growing hospital procedure in the US. The present growth rate of this procedure for patients over 50 has climbed from 8% in 2000 to 21% in 2005 and is expected to grow increasingly larger as time progresses. With a current treatment cost estimate for Iomab™-B of $80,000 - $100,000 per patient and roughly 20,000 - 60,000 Bone Marrow Transplant procedures performed in the US in 2005, a clear multi-billion dollar market potential lies in store for the company if it can successfully commercialize its treatment. Likewise, Actinium's Actimab™-A therapy for Acute Myeloid Leukemia (AML) is also currently addressing an extremely large market opportunity. AML, which is the most deadly form of Leukemia is currently facing insufficient treatment options in the market place. In fact, due to the extremely high levels of toxicity currently encompassed by today's treatments, it is reported that present treatments kill as many patients as they help and offer no significant overall survival benefit to patients. If the company can successfully commercialize its Actimab™-A therapy for AML, its cost per treatment estimate is roughly $50,000 in comparison to the standard of $80,000 which appears to be a conservative target.
In looking at the significant overall survival benefit posed by Actinium's Iomab™-B therapy, coupled with the extreme need for an improved AML therapy which Actimab™-A could potentially offer, it appears that Actinium is currently working with two extremely strong lead pipeline candidates. Likewise, the current institutions helping Actinium to bring these therapies to market speaks volumes in regards to the future potential encompassed by Actinium's treatments. The company is currently working with John Hopkins Medicine, MD Anderson Cancer Center, Memorial Sloan Kettering Cancer Center, Fred Hutchison Cancer Center and University of Pennsylvania Health in clinical studies for its Actinab™-A therapy. With an advanced immunotherapy technology platform and a massively in need and underserved market for blood born cancer treatments, Actinium looks well positioned to be a potential future leader in this major disease market.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.