NEW YORK (TheStreet) -- XBiotech (XBIT) - Get Report CEO John Simard explained why the company derives its antibodies from humans -- it creates fewer adverse reactions and results in superior performance.
"In a guinea pig or a mouse or a rat or a chicken --or a test tube, which is where most antibodies come from now -- engineering can't be vetted in the context of the human body," said Simard. "The only place to get an antibody that is safe and that doesn't hurt you is go into a person and get one of those that were tested and vetted in the human immune system."
Austin, Tex.-based XBiotech went public at $19 a share in mid-April, and quickly jumped above $31. The shares have drifted lower since then and changed hands around $16.50 on Thursday.
This week, the company announced the publication of Type 2 diabetes clinical results which showed that the company's antibody therapy not only improved measures of glucose control, but also reduced blood pressure in patients.
"It's really the first of its kind -- a way to approach treating diabetes from curing the disease rather than just supplying insulin," said Simard about the company's patented True Human technology.
The company's lead drug, Xilonix, is in Phase 3 trials in Europe for metastatic colorectal cancer patients. The results are expected to be revealed later this year. Xilonix is designed to block chronic inflammation associated with malignant tumor growth.
"With that antibody, we were able to reduce cancer's negative effects on the body, suppress the growth of the tumor by blocking angiogenesis in the tube," said Simard. "We are doing all these marvelous things at once with patients feeling better and recovering, which is a really novel thing to see in a cancer therapy."
Finally, Simard said the company is well-capitalized to take its drugs through the approval process and into the market.
"We are not for sale, but we are well-positioned to take this to market," said Simard. "We are also actively in communication with potential partners."