Cleveland Biolabs Not a Typical Biotech Play

A New York presenter is recommending Cleveland Biolabs (NASDAQ: CBLI, $7.02) as a buy. The company will be filing an application with the FDA next year for its anti-radiation drug CBLB502. Unlike the regular process, the filing will be done under the animal efficacy rule, where only a proof of efficacy in animals and safety trials in humans are required. CBLB502 has shown a remarkable efficacy profile in promates and mice and the company has already successfully concluded two human safety trials. The downside risk has been reduced substantially with the award of a contract by the DOD last month. The potential market for medical applications for the drug in reduction of radiation and chemoterapy treatment side effects far exceeds the defense uses. CBLI's research is supported by various government agencies. The company has other promising programs in its pipeline. The presenter believes that the upside could be very large at this level.