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Chris Wood says, “this is the only microcap on the planet using artificial intelligence to disrupt the $140 billion cancer drug market!”

What's the microcap being pitched by Project 5X?

By Travis Johnson, Stock Gumshoe, March 16, 2021

Today I’m looking at a teaser pitch from Chris Wood, who’s pitching his Project 5X newsletter (currently $2,497/yr, 30-day refund period) by hinting at a new microcap idea that he likes… here’s how he introduced this tease in one of his free emails recently:

“This tiny microcap is worth just $200 million… and is disrupting an industry 700X its size.

“In short: It’s the only microcap on the planet using AI to develop new cancer drugs. It’s all thanks to its proprietary AI… which analyzes more than 1 billion data points to revolutionize drug development…

“This microcap also has four important milestones coming up… And just one positive result could send its stock jumping 20% in a day… 50% in a week… and 100%+ in a month.

“From there, my calculations show 900%+ upside is on the table if you get in now.”

Wood is flush with some recent success in picking Atomera (ATOM) as a microcap play, and he does cite that as a reason to bet on these kinds of very small companies — I don’t know what his “batting average” might be overall, but it has been a great year for tiny stocks and I can confirm that he was pushing ATOM hard last year, I covered that tease most recently in August and it worked out very well for him.

This one, however, is in a very different industry — this is all about biotech, which we all know (or should know) is a sector that’s prone to wild boom and bust stories and dramatic catalyst events — news from clinical trials, FDA approvals (or rejections), and takeovers mean that most weeks we see both an 80% loser and a 100% gainer in biotech. I don’t spend a lot of time in this area, mostly because I have no great insight to the science and don’t have the hubris to bet on clinical trials when the people selling me those shares probably understand the science better than I do, but every once in a while I’m tempted to speculate on an interesting story.

Will this be one? Well, let’s dig in and see what the stock is first, shall we? Don’t want to put the cart before the horse.

So… tiny microcap, working on cancer drug development, and using artificial intelligence. What other clues do we get in Wood’s pitch? This bit gets us a little closer to an answer…

“It’s incredibly hard to bring a new drug to market.

“It takes 10 to 15 years on average…

“It costs up to several billion dollars…

“And only about 1 in 10 drug candidates ends up receiving FDA approval.

“In other words, drug development is begging for a BIG BREAKTHROUGH.

“And this microcap pulled it off…

“In short, using sophisticated artificial intelligence, this microcap can make drugs cheaper, faster, better, and with greater precision.

“For example… it successfully got its prostate cancer drug into phase 2 trials 10 times faster than the average drug takes.”

Other hints?

“… proprietary AI… which analyzes more than 1 billion data points to revolutionize drug development….

“… tech has been validated in blind case studies with over 80% accuracy….

“… three drugs in development.

“It has locked down 80 patents…”

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And a little bit about the stock…

“This company is still under the radar, having gone public last year in a small, quiet IPO.

“Only two analysts on all of Wall Street cover the stock.”

Geez, there were quiet IPOs last year, too? Even with so many great big loud ones? I guess there always are, there’s only so much hype to go around.

So what’s the stock here? Thinkolator sez Chris Wood is pitching Lantern Pharma (LTRN), which did indeed go public back in June of 2020, without much fanfare (it is very small, and raised only about $26 million… and it fell 30% or so in its first couple months).

And yes, Lantern is trying to use AI to streamline drug development — but it’s not really discovery they’re doing, for the most part, it’s analysis. As I read it, they’re mostly using their proprietary data platform, RADR, to analyze genomic data and repurpose older drugs that might work better or find new life against specific cancer subtypes or specific types of patients. Here’s a video of a RedChip interview with CEO Panna Sharma, who explains some of how it works in a fairly understandable way (RedChip is a promotional investor relations platform, so take that into account):

It sounds pretty cool, we know that using genetic analysis of both cancers and patients to target specific treatments to specific cancers has been making a big difference in recent years, and I like the general argument that they’re using this data analysis to reduce the risks of developing drugs or to rescue drugs that look like failures in a broad trial, but can be huge successes if you do a better job of identifying the patients who are likely to do well on that drug.

So it sounds like they look for drugs that have a lot of data but didn’t get approved — drugs that have good safety profiles, and enough demonstrated efficacy to advance pretty far in the clinic, but failed because they weren’t effective enough to be better than existing treatments. Lantern licenses in that drug after finding some reason for potential in the data, refocuses it on a specific patient base who have a specific biomarker, puts it through trials to prove it up for that specific application, then re-sells or re-partners that drug back to a developer who can push it forward again on a new path.

It should be a pretty big year for Lantern, news-wise, they now have seven “tumor targets” in development and one drug in Phase 2 trials (LP-100 for prostate cancer) and another likely to reach that point in six months or so (LP-300 for non-small cell lung cancer), followed by one that they seem to be really enchanted with in glioblastoma (LP-184) that could hit the clinic later this year… and they say they’ll have more programs to announce this year.

They have also now, in their words, “extended the cash runway to 2025” with their January secondary offering that raised $69 million, which should mean that they have something like $85-90 million in cash on the books. Their spending is pretty light, only about $3 million last quarter because of the general efficiency of their deals (they’re not spending hugely to buy drugs or develop them from scratch, nor are they planning to do the final commercialization and the expensive Phase 3 trials, they seem to rely on partners for most of that), so they do have time for good news to develop. Their strategy does limit the upside potential to some degree, Lantern is not likely to have a multibillion-dollar blockbuster all on its own… but the focus on incremental improvements in efficacy and efficiency, using drugs that have already been studied, reduces the risk of a real blowup, too, and from their very small size, just a piece of a meaningful drug for a targeted patient group would be financially meaningful.

As I noted, I don’t get into individual biotechs who are doing drug development very often. I’d probably find Lantern more instantly appealing if it were selling access to its RADR AI/machine learning platform and letting other companies develop the drugs, and just earning those software subscriptions and maybe getting a royalty on the back end… though I guess you could say that with their in-licensing, drug retargeting, and exit strategy, perhaps this isn’t so terribly different from that idea.

And while I don’t really know how the RADR platform compares to the many other A.I. projects in drug development and discovery, the stock doesn’t carry the huge valuations of some of the higher-profile AI “stories” in the drug discovery space, so I can see why this might be a tempting speculation… though I certainly don’t know what kind of results they’ll see from their clinical trials over the next year or so, and I imagine that news will have a big impact, for good or ill, on investor perceptions of the value of this data platform.

Biotech investors are always looking for the huge win, and perhaps Lantern will have such a win someday, but I’d be more attracted to the notion that they probably won’t have huge losses, and are well-funded for their niche ambitions, with a growing data set and a growing number of programs to increase their “shots on goal” without major capital outlays. Might be worth a gander for those of you who are into the science and the biotech stuff, their Investor Presentation is pretty compelling and I can feel some of the appeal here for a microcap hopeful, but given my lack of knowledge about these drug programs and the details of their collaborations, I’ll just leave it there — if you’ve got some insight into the value inside Lantern, or the lack thereof, please do let us know with a comment below… thanks for reading!

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mandrover
March 16, 2021 1:10 pm

Travis,
I think that it might be helpful to look at this company as more of a tech company.
What is valuable to tech companies?? DATA! Their technology is pretty impressive using AI to analyze drugs and the physiological responses that occur. Their stated goal is to acquire billions of data sets as they progress. I am less interested in their ability to produce a drug in the near term but more interested in this company based on their technology and the trove of data they will likely acquire.

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Chris
Chris
March 16, 2021 1:14 pm

Hi Travis. First time commentor here. By the way, thanks for the midday alert on the Wesco pullback. Great call. Wish I bought more! I know Cathie Wood has been a somewhat controversial lately and most of her ETFs are heavily weighted with Tesla. But, her ARKG (Genomics) ETF is something I’ve been watching with interest. I just checked and Lantern is not, as of yet, included in their holdings (and she’s not afraid of microcaps). For what that’s worth.

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oneness
oneness
March 16, 2021 1:33 pm

Speaking about farma, SAVA caught my attention but since I know nothing myself about drugs, I will kindly ask if anyone is following this company and has any insights to share. Appreciate your help

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jeffreyl
Member
March 16, 2021 2:03 pm
Reply to  oneness

LOOK IT UP! Maybe YOU can help someone here. Wouldn’t that make you feel better?

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oneness
oneness
March 17, 2021 10:48 am
Reply to  jeffreyl

Your reply was helpful beyond your imagination. Thank you !

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oneness
oneness
March 17, 2021 10:52 am
Reply to  jeffreyl

And forgot to say, the stock is up 11% up to now ( got a 101 price target). I didn’t make money on it. But I hope someone else did. And I really hope you are one of them!
Thanks again

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socbag
Member
socbag
March 17, 2021 5:08 pm
Reply to  oneness

sava cassava. just successfully completed 2d phase studty, going on to more thrd phase. 2nd was “open” study – few if any restrictions , had nothing happen that would call off study, and some positive surprises. Goal is treatment/”cure” for alzheimers. Needless to say – very high price targets. search fidelity.com article sept 4 ,2020?sept 14 ,2020? under SAVA stock symbol.

oneness
oneness
March 18, 2021 5:16 pm
Reply to  socbag

Thank you so much for your time to reply. I know that they are going on phase III on their Alzheimer’s drug the 2nd quarter and hopefully they will succeed. Not for making money on the stock but for all the million of people who are suffering from this sedesse. Just got a sense that the stock was about to move but couldn’t find any apparent reason so I thought maybe I could get a confirmation from someone who owned the stock and more capable than me in understanding this sector. Most probably some people knew that was going to be initiated with a buy at price 110??? Hopefully I learned my lesson, I should trust more my gut feeling??? !!! Thank you again for your time and effort.

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enuhfer
enuhfer
March 16, 2021 1:37 pm

Any take on a company called Nannoviricides NNVC? Seems like their approach to viruses might be unconventional too.They seem in the Petri dish phases of testing.

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robert k
Irregular
robert k
March 16, 2021 1:43 pm

Interesting story – but up 15% today, so not jumping in now either.

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val
March 16, 2021 2:04 pm

a close friend just diagnosed w/ als. Any company specializing in als?

Luke Larkin
Member
Luke Larkin
March 19, 2021 3:03 am
Reply to  val

SEEL

Jeff
Member
Jeff
March 20, 2021 11:59 pm
Reply to  val

Promis Neurosciences (ARFXF) is tackling ALS, Alzheimer’s and Parkinson’s disease. I don’t know why these guys aren’t getting more attention for their precision medicine in getting money for their trials. Check them out, there’s a lot of information and DD to do on the subject. From the research I’ve done Biogen and LLY don’t even compare to the precision in knocking out the bad stuff and keeping the good stuff. Biogen and LLY knock out the whole protein and cause brain bleeds. Maybe Travis can shed some light on why ARFXF isn’t a $300 company with the cure for all of these diseases?

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Gerald Withers
Gerald Withers
March 16, 2021 2:58 pm

NNVC I was in it for years but finally sold at a loss. they have had lawsuits against them in the past, they seem to jump on every band-wagon opportunity that presents itself. don’t waste your money as there are better opportunities out there.

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enuhfer
enuhfer
March 18, 2021 2:43 am
Reply to  Gerald Withers

Thanks, Gerald. I held a small stake briefly and it was luck that I made money when it peaked abruptly a few weeks ago by 60%. I sold because that was way too big a jump for a Petri dish success report. I look back occasionally to see what it is doing. Just falling back to where it was. I think you nailed it.

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quincy adams
Guest
quincy adams
March 16, 2021 3:03 pm

Anyone who wants to nibble on LTRN may want to wait until after the April 15 end-of-lockdown period for stock, options & warrants.

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Foster Goodwill
Foster Goodwill
March 16, 2021 3:22 pm
Reply to  quincy adams

I dont see why after April 15 is a better time to buy stocks?

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pietro
Guest
pietro
March 16, 2021 5:26 pm

Actually they had staggered lock down periods. Couldn’t find amounts involved nor if next one is the final one.

tanglewood
March 16, 2021 7:58 pm
Reply to  quincy adams

Hi Quincy; is there any significance to your user name? I grew up in Quincy, MA.

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timcoahran
Irregular
March 17, 2021 1:38 am
Reply to  tanglewood

We’ve got a desert town of Quincy, WA (it’s just north of George)!

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lelexito
lelexito
March 16, 2021 4:25 pm

Hey there Travis,

Great analysis as usual. I actually wondered which stock it was yesterday and bought it this morning at $19/share. Here’s even more info regarding this promising biotech: https://scr.zacks.com/News/Press-Releases/Press-Release-Details/2020/LTRN-Reviving-Failed-Oncology-Drugs-with-AI-article/default.aspx

That said, do you agree with Chris’ comment where he names LTRN the “ONLY” microcap using AI to develop cancer drugs? Isn’t EVAX doing the same thing? Please let me know your opinion and keep up the good work.

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lelexito
lelexito
March 17, 2021 9:21 am

My thoughts as well. Thanks.

dougum
dougum
March 16, 2021 6:27 pm

Is this the same Chris Wood as the Biotech Millionaire ad about an “EPIDEMIC-ENDING” DIABETES BREAKTHROUGH?

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Sam
Guest
Sam
March 17, 2021 4:18 pm

I think he had also recommended ATHX and BCLI, both of which have gone down significantly.

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Michael Elliott
Member
Michael Elliott
March 17, 2021 1:03 am

Hi Travis, perhapsoff subject but what are your thoughts on the “I.D. COIN” being pro noted by the Poter…looks incredible!

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big tuna
March 17, 2021 10:37 am

I’m thinking its not so much the crypto currency itself but more of a work around to buy stock in a private company. I have yet to come across a crypto that actually does anything, but then I always think bitcoin has made over 100,000 people millionaires. Then to add onto things that don’t do anything there are non fungible tokens. I read commentary n WSJ the issue is there simply isn’t enough “stuff” to buy for people with newly acquired wealth.

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SoGiAm
March 17, 2021 2:00 am

.” $ENZC – The #SARSCoV2 mAbs we started producing last month is being investigated by Dr. Van Rompay (ACTIVE GRANT!). The same guy to lead #Clone3 animal trials
@CNPRCresearch
for #HIV. Also we get DUNS# showing active this month. Federal funding coming? Seems so.”
https://twitter.com/GodfatherCap/status/1372037616783228928?s=20
Best!

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SoGiAm
March 17, 2021 2:05 am

.Replying to @GodfatherCap
$ENZC – just wow. Give this man a follow if you haven’t already, outstanding DD
@bowzachary
Including additional snapshots to show Koen Van Rompay Connection.

Why the company didn’t PR this is beyond me! Face with tears of joy Expecting update soon

DROP THE BOMB @drgauravchandra
https://twitter.com/GodfatherCap/status/1372038977423806464?s=20
Best!
https://pbs.twimg.com/media/Ewp2LSiWYAIxV8P?format=jpg&name=large

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tofupunk
Guest
tofupunk
March 17, 2021 6:42 pm

Got lots out of it. Really digging this site. When researching MF I tend to end up here and learn more than I came for. Back to 5G and Semiconductors I go, what is that ticker., lol. Cheers

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outsider
March 17, 2021 8:30 pm
Reply to  tofupunk

akts

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moana1
Member
moana1
March 18, 2021 9:21 am

following

Matt B
Guest
Matt B
March 18, 2021 11:18 am

Travis, you’re consistently brilliant! Thank you for sharing your wisdom : )

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roblites
roblites
March 24, 2021 3:21 pm

repurposing existing approved drugs….ALGERNON……….AGNPF…FYI

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SoGiAm
April 9, 2021 11:19 pm

$POAI Predictive Oncology https://predictive-oncology.com/

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