XPhyto Therapeutics Launches Rapid Test for COVID-19, Zacks Research Initiates Coverage

XPhyto Therapeutics Corp. (CSE: XPHY | OTCQB: XPHYF | FSE: 4XT) (“XPhyto”) is a bioscience company with a focus on innovating, accelerating and commercializing, disruptive, disease diagnostic and drug delivery technologies. Some examples are diagnostics (COVID-19 testing and  biosensors) and new thin-film drug delivery methods. The company is also developing new active pharmaceutical ingredient manufacturing processes. XPhyto’s specialty is speed to market of commercial innovative medical products.

XPhyto has international expertise with headquarters in Vancouver and operations out of Germany. The Company is currently focused on regulatory approval and commercialization of medical products for European markets.

A summary of XPhyto Therapeutics Corp.’s bioscience accelerator business

Source: XPhyto company presentation

Rapid COVID-19 PCR test launched

On September 8, XPhyto announced the successful  launch into a growing market demand of its 25-minute COVID-19 PCR test (called ‘Covid-ID Lab test’) in Berlin, Germany. This event followed on news announced on March 18, 2021 that XPhyto’s rapid 25-minute COVID-19 PCR test had gained European approval.

XPhyto stated:

“In parallel to the pilot project, we are developing further approaches and services with our partners to offer modular testing and hygiene solutions for larger events, such as concerts, sporting events and conferences……Given our competitive pricing, we are in a strong position to accelerate sales growth in the near term.”

The XPhyto Covid-ID Lab test has great potential for (25 minute) rapid testing at airports, cruise ship terminals, border testing, schools, medical centers, government agencies, public venues and job sites markets. With over 84 million people, Germany is a very important and potentially lucrative market for XPhyto.  XPhyto plans to expand through Europe to service its 748 million people.

Biosensor test for oral disease launched

On August 30, XPhyto announced the launch of its first commercial biosensor test for oral disease. The biosensor test, in the form of a thin-film tab, dissolves on the tongue and if it turns turns bitter after five minutes it is an indication of the presence of ‘oral inflammation.’  The test has been successfully registered with the appropriate German authorities and is ready for partnering with wholesale distribution partners and market launch.

The announcement stated:

“(XPhyto and partner 3a-diagnostics GmbH) successfully registered their first biosensor test in oral inflammation with the German authorities (cosmetic products notification). The easy at-home self-check can be performed without the need for specific medical knowledge or training, analytical equipment or even a power supply. When placed on the tongue, the thin film dissolves and, after 5 minutes, the biosensor releases a bitter taste in case of oral inflammation. The biosensor functions as a quick test for heightened levels of certain bacteria and viruses to check whether a doctor’s visit and further tests are necessary.”

XPhyto believes that biosensors in general, and 3a’s innovative biosensor system in particular, are a promising and reliable platform technology for accurate, early screening and diagnosis of diseases. XPhyto has signed an acquisition agreement with 3a which means XPhyto will acquire all of the outstanding shares of 3a for EUR 3.9 million with a planned closing on or around October 31, 2021. You can read more details about 3a-diagnostics GmbH here.

XPhyto coverage by Zacks Research

On September 28, 2021, Zachs Research gave an initiated coverage on XPhyto and concluded:

“The company is optimistic about the prospects for the COVID19 test and other products in its pipeline, as noted. While it is difficult to know the revenue arc for XPHYF at this early stage, just based on the sizable need for COVID testing, we believe the current share price of about $1.10 does not reflect the fundamental value of the company’s pipeline and prospects and would anticipate upside if the company continues to advance its candidates. We believe the substantial size of the company’s target markets and the company’s view of the competitive advantages of its diagnostic and delivery platforms suggest strong revenue growth if the company successfully executes its strategy.

……we believe the average pricetosales multiple of companies in this comparison of 14x provides a valuation benchmark for XPHYF. Therefore, applying a 14x multiple to our $8 million to $14 million 2025E revenue forecast and discounting back at 3% results in a present value of nearly $102 million to $179 million for XPHYF, or a mean value of about $2.00 per share.”

XPhyto’s buy and build strategy showing past acquisitions timeline

Source: XPhyto company presentation

Closing remarks

New bioscience companies need to move quickly and work hard to establish a market share into niche products that can rapidly lead to revenues. To do this the company first needs to spot a strong trend or need, such as COVID-19 rapid testing, and then move fast with a great product to get ahead of competitors.

XPhyto is doing a good job so far of innovating and bringing, in-demand, pharmaceutical products rapidly into the marketplace. Its next step will be to see how quickly the products can achieve a strong uptake and strong revenues.

XPhyto Therapeutics Corp. trades on a market cap of C$95 million with the 3a-diagnostics acquisition due to finalize very soon. This acquisition looks to be the best so far and with COVID-19 testing and the biosensor market doing well it should only boost XPhyto’s near term prospects. Stay tuned.

XPhyto gains traction in European market with ‘one of the fastest PCR-based COVID-19 tests currently approved’

XPhyto Therapeutics Corp. (CSE: XPHY | OTCQB: XPHYF | FSE: 4XT) (“XPhyto”) is a next generation bioscience company beginning a global rollout of their rapid COVID-19 PCR test, commencing in Europe. The global rapid test market is projected to reach USD $39.1 billion by 2023 with a CAGR of 8.9%.

XPhyto is also working on next-generation drug delivery and new active pharmaceutical ingredient products. An example of the latter is their psychedelics therapies for neurodegenerative and other diseases.

XPhyto Therapeutics is building a global team to innovate, accelerate and commercialize disruptive technology, from drug delivery formulations to diagnostics

Source: XPhyto Therapeutics website

Rapid COVID-19 PCR testing achieves European approval and Germany distribution begins

XPhyto announced on March 18 that their JV rapid (25 minutes) COVID-19 PCR test (“Covid-ID Lab”) had gained European approval. XPhyto has teamed up with its exclusive German diagnostics development partner, 3a-diagnostics GmbH (“3a”). XPhyto CEO and Director Hugh Rogers, stated: “Our test is one of the fastest PCR-based COVID-19 tests currently approved. With a sample collection to result time of 25 minutes, Covid-ID Lab combines the speed of a rapid screening test with the accuracy of a PCR diagnostic.”

XPhyto’s COVID-19 test achieves rapid results, minimal laboratory equipment and hence portability, and is easy to use. XPhyto is currently in discussions with various potential distribution and wholesale partners as well as potential licensees.

As a result of achieving the European approval XPhyto has appointed Mr. Manfred Buchberger as the Head of Corporate Development at XP Diagnostics GmbH (“XP Diagnostics”), a wholly owned German subsidiary of the Company. XPhyto continues to enhance its commercial team as it anticipates near-term distribution and sales.

On April 21 XPhyto announced the signing of a German distribution, storage and logistics agreement for their rapid COVID-19 PCR test. Hugh Rogers stated: “With this agreement, we have secured a strong partner with an established medical distribution network throughout Germany. This is an exciting and critical step towards commercial sales of COVID-ID Lab.”

Next focus for XPhyto’s COVID-19 PCR Rapid Test is Israel

On April 28, XPhyto announced that they had delivered 2,000 of their 25-minute PCR tests to an established Israeli medical distributor for clinical evaluation and regulatory approval. Potential customers include government institutions, private healthcare providers and neighboring countries. Israel recognizes several international medical device certifications including the European CE-IVD mark, meaning there is potentially a very high chance Israel will approve XPhyto’s test. The evaluation process is expected to be complete in less than 90 days and will form the basis for commercial approval in Israel.

Other products

  • XPhyto plans to expand its psychedelic programs in 2021, including scalable production of pharmaceutical grade compounds, drug formulations, and clinical evaluation. You can read more on this in my previous article on XPhyto here.
  • XPhyto and 3a are developing a portfolio of oral biosensor screening tests for detection of bacterial and viral infectious diseases, including pandemic-focused biosensors. XPhyto is planning the commercial launch of its first biosensor product in the second half of 2021.
  • XPhyto provides innovative drug delivery methods such as transdermal patches and oral dissolvable films designed for efficient and affordable delivery of approved neurological medications.

XPhyto Therapeutics company summary of current operations

Source: XPyto Therapeutics corporate presentation

Closing remarks

As discussed, XPhyto is working on several products simultaneously. This helps accelerate XPhyto’s journey of commercializing their innovative medical products.

XPhyto’s rapid COVID-19 test has won approval in Europe, and will now be distributed initially in Germany, with other parts of Europe likely to follow. Next should potentially be Israel if the test is approved. All of this is very promising and has potential to significantly boost revenues in H2 2021.

It is still early days and a lot to be achieved, but given that XPhyto Therapeutics trades on a market cap of C149 million there is still plenty of upside if XPhyto can successfully commercialize their product range. For now, the focus has been just Canada and Germany, so that means there is still huge potential global expansion ahead. Stay tuned.

XPhyto Therapeutics Hugh Rogers on the fastest and most portable PCR test available

In a recent InvestorIntel interview, Peter Clausi spoke with Hugh Rogers, CEO and Director of XPhyto Therapeutics Corp. (CSE: XPHY | OTCQB: XPHYF) about XPhyto’s rapid point-of-care COVID-19 PCR test system which is very close to commercialization.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Hugh went on to speak on the different types of COVID-19 tests out of which, he said, “PCR test is the gold standard of diagnostics.” He added that XPhyto’s PCR test is less invasive as it is oral and requires minimal equipment and training. The test has been optimized for speed and portability. “What we have designed is we believe to be the fastest and most portable PCR test available…”

To watch the full interview, click here

About XPhyto Therapeutics Corp.

XPhyto Therapeutics Corp. is a bioscience accelerator focused on next-generation drug delivery, diagnostic, and new active pharmaceutical ingredient investment opportunities, including precision transdermal and oral dissolvable drug formulations; rapid, low-cost infectious disease and oral health screening tests; and standardization of emerging active pharmaceutical ingredients for neurological applications, including psychedelic compounds and cannabinoids. The Company has research and development operations in North America and Europe, with an operational focus in Germany, and is currently focused on regulatory approval and commercialization of medical products for European markets.

To learn more about XPhyto Therapeutics Corp., click here

Disclaimer: XPhyto Therapeutics Corp. is an advertorial member of InvestorIntel Corp.