Why ALBT Merits Close Attention at Deep Discount Levels

AI is already having a major impact on the biotech industry, and its influence is only going to grow in the years to come.

One of the most promising applications of AI in biotech is the development of new drugs and therapies. AI can be used to screen vast libraries of compounds for potential drug candidates and to identify new targets for drug development. AI can also be used to design new drugs that are more likely to be effective and less likely to have side effects.

AI is also being used to improve the efficiency of manufacturing processes in the biotech industry. AI can be used to optimize the production of drugs and therapies and to identify potential problems in the manufacturing process. AI can also be used to automate tasks that are currently performed by humans, which can free up human workers to focus on more complex tasks.

Personalization is a big part of this equation. AI can be used to analyze a patient's medical data and identify potential risks and vulnerabilities. AI can also be used to recommend personalized treatments for patients.

Overall, AI is being used to develop new drugs and therapies, improve the efficiency of manufacturing processes, and personalize healthcare in meaningful ways. And this has enormous implications for investors looking to position risk capital with a forward-looking mindset.

In other words, this is a breakthrough sub-industry in the making. And investors have yet to fully unearth all the gems emerging in this space.

With that in mind, we take a closer look today at one of the most interesting deep-discount names that fit this premise: Avalon GloboCare Corp. (NASDAQ: ALBT).

The Story So Far

Avalon GloboCare Corp. (NASDAQ: ALBT) bills itself as a clinical-stage biotechnology company dedicated to developing and delivering innovative, transformative cellular therapeutics, precision diagnostics, and clinical laboratory services.

Avalon also provides strategic advisory and outsourcing services to facilitate and enhance client growth and development, as well as competitiveness in healthcare and cell technology industry markets.

Through its subsidiary structure, with unique integration of verticals from innovative R&D to automated bioproduction and accelerated clinical development, Avalon is establishing a leading role in the fields of cellular immunotherapy (including CAR-T/NK), exosome technology (ACTEX), and regenerative therapeutics.

The company has recently made several important moves to put it on our radar.

First and foremost, we would point out its announcement that the United States Patent and Trademark Office (USPTO) issued U.S. Patent No. 11,555,060, titled "QTY Fc Fusion Water Soluble Receptor Proteins."

The issued claims cover the composition of matter and methodology for multiple novel QTY-code-modified cytokine and chemokine protein receptor molecules. The patent was jointly filed with Dr. Shuguang Zhang of the Massachusetts Institute of Technology (MIT).

As we see it, the "QTY Code," is a breakthrough technology that can turn difficult-to-work-with water-insoluble transmembrane receptor proteins into water-soluble proteins, greatly enhancing the solubility of designer peptides and proteins, therefore expanding the repertoire of selected therapeutic targets against cancers and other diseases.

And this announcement brings the company into the purview of AI-enhanced Biotechnology solutions.

We will explore this point further below. But we would be remiss if we didn't also point out the company's other key recent announcement: its acquisition of a 40% interest in Laboratory Services MSO, LLC ("LSM"), a premier clinical diagnostics and reference laboratory.

According to the company's release last month, LSM is headquartered in Costa Mesa, California, and provides a broad portfolio of diagnostic tests including drug testing, toxicology, pharmacogenetics, and a broad array of test services, from general bloodwork to anatomic pathology. Specific capabilities include STAT blood testing, qualitative drug screening, genetic testing, urinary testing, sexually transmitted disease testing, and more. LSM has a sophisticated and state-of-the-art facility for clinical diagnostics and reference laboratory. It has also developed a premier reputation for customer service satisfaction and fast turnaround time in the industry. LSM has completed over 600,000 tests since inception and currently has two operational locations in California.

The release notes that the total consideration for the transaction was $21 million, consisting of (i) $9 million in cash, (ii) $11 million in shares of the Company's Series B preferred stock, which are convertible into shares of the Company's common stock at a fixed conversion price of $3.78 per share, and (iii) $1 million in cash payable on February 9, 2024. The preferred shares will be restricted from conversion for 12 months and thereafter will have leak-out provisions restricting conversion to only 10% of total holdings.

In addition, the seller is also eligible, under the terms set forth in the purchase agreement, to receive certain earnout payments upon achievement of certain operating results, which may be comprised of up to $10,000,000 of which (iv) up to $5,000,000 will be paid in cash and (v) up to $5,000,000 will be paid pursuant to the issuance of the number of shares of Company common stock valued at $5,000,000, calculated using the closing price of the Company's common stock on December 31, 2023.

The Future is Bright

As discussed above, Avalon GloboCare Corp. (NASDAQ: ALBT) recently announced that the United States Patent and Trademark Office (USPTO) issued U.S. Patent No. 11,555,060, titled "QTY Fc Fusion Water Soluble Receptor Proteins."

This follows the company's announcement that it has deployed a breakthrough fusion gene map technology to be used for the goal of developing companion diagnostic kits and devices to enhance personalized clinical management of leukemia patients.

According to its release last quarter, in collaboration with the Lu Daopei Institute of Hematology, a fusion gene map database from over 1,000 patients with leukemia was established and the results were previously published in the Blood Cancer Journal. Fusion genes are important genetic abnormalities in leukemia. Using advanced gene sequencing technology, called "Whole Transcriptome Sequencing" (WTS), multiple previously unknown fusion genes were identified which may potentially establish novel diagnostic and therapeutic targets.

"Fusion genes are crucial in the diagnosis and treatment of leukemia. All well-known fusion genes are founder variations and constitute critical causative factors and can serve as important indicators of disease diagnosis," stated David Jin, M.D., Ph.D., President and Chief Executive Officer of Avalon GloboCare.

"Avalon is applying the bioinformatics from the fusion gene map with the goal of accelerating the development and commercialization of companion diagnostic kits and devices to enhance personalized clinical management of leukemia patients. The first diagnostic prototype is expected to enter clinical study and regulatory filing stage during Q3 of 2023. The fusion gene map technology also provides an unprecedented opportunity to identify and validate fusion gene products as potential novel therapeutic targets. Additionally, this gives us an opportunity to expand Avalon's R&D pipeline and intellectual property portfolio."

Where will this lead?

One thing can be stated with certainty: the potential of AI-enabled biotechnology investments has no ceiling in the years ahead. And ALBT has taken clear steps to put it on the map in that space.

Given the stock's recent drop in share price, this could be a powerful opportunity for those looking to put speculative capital to work.

The post Why ALBT Merits Close Attention at Deep Discount Levels appeared first on Wall Street PR.

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