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Management’s assessment and value of Q BioMed outlined

NEW YORK, May 6, 2022 – Q BioMed, Inc. (OTCQB: QBIO) a commercial-stage biotechnology development company outlines its strategy and value proposition for its stakeholders and shareholders.

Q BioMed Inc. is a commercial stage biomedical acceleration and development company focused on licensing, acquiring, and providing strategic resources to innovative and value driven biotech asset development. We have mitigated some traditional biotech single-asset risks by acquiring multiple assets over time and across a broad spectrum of disease indications and in large addressable markets. We have spent the last 6 years developing our portfolio to a point where its value is starting to be realized.  The focus for 2022 and beyond is to monetize the current pipeline and build a platform for future growth. There are 4 areas of focus: commercial product revenue growth, partnerships, joint venture equity value and future development platform.

Commercial Product Revenue Growth: Strontium89 FDA Approved Radiopharmaceutical for the treatment of metastatic cancer bone pain.

We believe that Strontium89 has great potential in the cancer palliation space. As a result of a world in which opioids were a treatment of choice for those patients unlucky enough to be diagnosed with painful metastatic cancers in the bone, we felt that Strontium89 had become a neglected and forgotten drug. We have stayed committed to our belief that Strontium89 is a valuable treatment and have focused on advancing that asset from concept, a neglected drug, to a fully approved, reimbursed commercial product. Since we acquired Strontium89, we have built an infrastructure to commercialize the product, including manufacturing, branding, pharmacovigilance, reporting, federal supply contract, and entering into distribution agreements in the United States and several other countries. We believe that our last remaining investment is now focused on a sales team to promote the drug both in federal and non-government institutions and clinics. Revenue has started to grow even without a sales force fully deployed. We expect revenues to grow steadily and over the next 12-18 months. Our sales for March, the start of our Q2, have already exceeded those of our Q1 revenue number and we recently received a $500,000 order from our distribution partner to supply the Chinese market, which we will begin fulfilling once all the required licenses and logistics are in place. We are encouraged by this growth in the absence of a field sales force, which we expect to deploy post funding.

We believe this asset alone has a value exceeding that of the current market cap of the entire company. With sales expected to hit the million dollar mark this year, $3 to $5M next year and $5 to $7M in 2024, a reasonable net present value for this asset alone could be $15M conservatively.

Mannin Research Platform Drugs for ARDS, Glaucoma, Kidney Diseases and others in several multi-billion markets.

With the uptake of vaccines for COVID-19 growing, the infection numbers are still soaring around the world due to new variants and communities growing apathy and resistance to mandates and social restrictions. In partnership with Q BioMed Inc..  Mannin Research Inc. (Mannin), our technology partner, is developing a unique, novel and first-in-class therapeutics for patients with Acute Respiratory Distress Syndrome (ARDS). In addition, Mannin is developing a companion diagnostic to detect ARDS in both COVID and non-COVID patients.

ARDS is seen in both moderate-to-severe COVID patients as well as non-COVID.  The therapeutic in development treats the patients (the Host), not the virus (or other pathogen). It acts on the host to improve endothelial cell function.  We believe this makes it an invaluable treatment for Corona viruses, as well as other viruses like influenza.  The ARDS therapeutic and companion diagnostic are strategically important set of tools needed for the future.  We expect it to be ordered by governments around the world as part of a pandemic therapeutics strategy, augmenting the vaccine strategy already in place. The market for this kind of treatment in the current pandemic climate is substantial and global. ARDS is a $50 billion a year market.

Independent of Q BioMed’s contributions, Mannin has raised more than $10million USD to enable the rapid development, manufacturing, and initial clinical testing with COVID patients of the ARDS therapeutic. 

Mannin expects to raise additional financing, much of which may be non-dilitive, over the next 12 months in order to scale-up and accelerate its manufacturing process and begin large clinical scale trials.

As part of this acceleration Mannin’s team of experts in this field has now been expanded to over 20 scientists and engineers with world-class expertise in commercial manufacturing of protein therapeutics.

The financing activities of Mannin and the progress with its ARDS program has effectively de-risked much of the program as its enters clinical trials within the next 10 months. 

Successful clinical safety data in the Phase I clinical program for ARDS ($50B) will support the development of two additional therapeutics in adjacent markets, glaucoma ($7B) and kidney disease ($70B)

With safety data achieved in the phase I, the de-risking of the asset in the Phase I trial, we believe there are licensing opportunities for the glaucoma and kidney disease indications as well.

What does that mean for Q BioMed? Based on our current agreement and potential equity stake, this could easily double our current market cap on a mark to market valuation of the equity; with a forward-looking net present value being significantly higher. If the Mannin value is achieved based on the asset development roadmap, as well as the expected license and marketing revenues, it could be a contingent asset value of approximately $60M for Q BioMed.

UTTROSIDE B – Liver Cancer Chemotherapeutic

Along with our developmental partners, we are advancing an innovative treatment for liver cancer, a disease indication that currently has a high unmet need. This molecule was identified in India, traditionally used to treat liver ailments. Subsequent research on that isolated molecule showed promising data, indicating that the molecule was more cytotoxic, killing cancer cells more effectively, in liver cancer cells lines than the current first line liver cancer chemotherapeutic. We have advanced this from a naturally occurring unsustainable plant product to a commercially viable and scalable synthetic drug candidate. This provides an opportunity to partner this asset with a larger oncology focused institution. Currently, there are only two approved first-line liver cancer therapies. We have received Orphan Drug Designation, and we are now preparing to advance this toward clinical partnership. The current first line chemotherapeutic for liver cancer is a billion dollar a year drug with very little competition. Putting this asset into a fully funded clinical program would highlight its value in a billion-dollar addressable market segment.

Development Platform – Rare Disease Focus

During 2022 we will focus our future development platform on the Rare Disease Space. This focusses our resources on an area in which we already have a presence. Our liver cancer drug candidate, Uttroside B, has already received Orphan Drug Designation. We expect to partner this asset in mid-2022 and will grow our development platform through in-licensing or acquisition.

Our planned acquisition in this rare disease platform will also complement our early-stage treatment for young minimally verbal children on the Autism Spectrum. The siRNA target acquisition has one IND ready to start a clinical trial and dozens more indications to follow. This is a platform that could churn out rare disease therapies in markets with little or even no competitive products. This is how some of the biggest names in rare diseases became billion-dollar companies.

Corporate Development

With the outline of the value in the pipeline at Q BioMed, it is extremely disappointing to see the market cap and stock price where it is. It is our belief that this is not due to lack of fundamentals as evidenced by the above opportunities we have created. Our current capital structure has created a roadblock to our ability to fully fund these development opportunities. We are working with our debt holders to navigate to a better cap table and an uplisting to the Nasdaq. This may include changes to management to augment our access to capital and expertise in some areas.  As shareholders, our interests are aligned with all of you. Accordingly, we hope that you will realize the value in the deep pipeline at Q BioMed and continue to support our vision to bring important therapies to the patients that need them and of course create real value for you in the process.

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About Q BioMed Inc.

Q BioMed Inc. (Q) is a commercial-stage biomedical acceleration and development company. We are focused on licensing and acquiring biomedical assets across the healthcare spectrum. Q is dedicated to providing these target assets the strategic resources, developmental support, and expansion capital they need to ensure they meet their developmental potential, enabling them to provide products to patients in need‏.

Forward-Looking Statements:

This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to our growth strategy and product development programs and any other statements that are not historical facts. Forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated are: risks related to our growth strategy; risks relating to the results of research and development activities; our ability to obtain, perform under and maintain financing and strategic agreements and relationships; uncertainties relating to preclinical and clinical testing; our dependence on third-party suppliers; our ability to attract, integrate, and retain key personnel; the early stage of products under development; our need for substantial additional funds; government regulation; patent and intellectual property matters; competition; as well as other risks described in our SEC filings. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based, except as required by law. There may be other risks and circumstances that management may be unable to predict. When used in this press relese, words such as, “believes,” “expects,” “intends,” “plans,” “anticipates,” “estimates” and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.

Q BioMed Media Contact:
Denis Corin
CEO

Investor Relations:
Keith Pinder
+1(404) 995-6671
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