Petlife Pharmaceuticals Inc (OTCMKTS:PTLF) is an interesting name in the biotechnology and animal life sciences space that may deserve a closer look for investors in search of speculative targets in the small and microcap markets. There’s a lot going on here, but the stock has been sorely underappreciated by investors, possibly creating a deep discount/value opportunity to get on the elevator in the basement.
The company’s most recent press release is very informative. Ralph Salvagno, MD, CEO and Chairman of the Company, penned a letter to shareholders that hit the general wires this week. The message was clear: the company is about to mount an all-out war on bearish stock price action. Management plans to hit the road in coming weeks to show the world why the market has been so wrong in its valuation of the stock, in light of positive developments for both its oncological research and nutraceutical product development.
Petlife Pharmaceuticals Inc (OTCMKTS:PTLF) frames itself as a registered U.S. Veterinary Pharmaceutical company whose mission is to bring its scientifically proven, bioactive medication and nutraceuticals to the world of veterinary oncology.
The Company specializes in the research, development, sales and support of advanced drugs and nutraceuticals for pet cancer and autoimmune related diseases such as arthritis.
According to company materials, “PetLife Pharmaceuticals, Inc. (PTLF) is a registered U.S. Veterinary Pharmaceutical company. PetLife’s mission is to bring its new, non-toxic, bioactive nutraceuticals and prescription medications to the world of veterinary oncology with the ultimate goal of preventing cancer and extending the life of pets suffering from cancer while improving their quality of life. The Company’s first product, Vitalzul™, is currently in testing. Vitalzul™’s active ingredients have been shown to have activity against several different cancer cell lines. In the U.S. alone, consumer spending on domestic companion animals reached over $60 billion in 2015 with over $29 billion spent on veterinary care and medications. PetLife’s acquired brand, Dr. Geoff’s Real Food for Pets, will launch in 2017. PetLife Scorpion Ranch™ will break ground in 2017. PetLife anticipates incorporating Vitalzul™ in a new and advanced therapeutic pet food line in 2019.”
The stock might be grouped with other pet and animal health biotechs such as Henry Schein, Inc. (NASDAQ:HSIC), Zoetis Inc (NYSE:ZTS), and Abaxis Inc (NASDAQ:ABAX), but PTLF is differentiated by its diversification, with potential to make waves in both basic pet supplies and oncological treatment.
On a Mission
As we discussed above, PTLF may well be an interesting name right now, particularly as the company has clearly decided to make a strong goal of gaining traction over the stock price through an awareness campaign that explores “the fundamentals of our research, our patent pending technology, our mission, and our team” as factors that should tip the scales in shareholders’ favor.
From our research, we think the message will focus on two main themes: the company’s recent acquisition of Dr. Geoff’s Real Food for Pets, which is set to launch to market this year, and the company’s development of a “scorpion farm”, where it plans to extract large volumes of scorpion venom – one of the world’s most precious commodities, valued at over $7k/gram.
As noted in the letter, “We have engaged our in-country team for the development of our PetLife Scorpion Ranch. Scorpions have been collected and plans continue to have the ranch fully functional and extracting venom within 60-90 days. Venom is one of the world’s most precious liquids and is valued at over $7,000 /gm ($198,000/oz.). PetLife intends to use all its production of venom on proprietary PetLife products for the treatment of cancer and intends to continue research on Vitalzul™’s potential as a cancer preventative.”
As for the acquisition, Dr. Salvagno notes that the marketing research process for effectively bringing Dr. Geoff’s to market will likely take the better part of the next 3 months, but this analysis is already taking into account models meant to establish the manufacturing and distribution channels necessary as well as this identification of strategic partners for advertising and promotion.
According to the letter, “PetLife Advisory Board member and world renown Veterinarian, Dr. Geoffrey Broderick, continues to promote the new brand, “Dr. Geoff’s by PetLife,” as well as drawing attention to the work being done by PetLife for the treatment of cancer through VITAZUL.”
Technically, the stock recently broke beneath key support in the $0.18 area to test $0.15/share. A move back above the $0.20 level would likely create a major landmark of support on the chart as a formal rejection of lower prices. We would be on the look-out for such a development. It mark a major turning point. Given the objective of management at the company right now, it wouldn’t be surprising either.
