Silo Pharma (SILO) Stock: This Stock Is A Huge Opportunity

Technological advancements have changed the way we travel, communicate, research, and trade in financial markets. It has also led to several changes in medicine. 

Years ago, if you were diagnosed with AIDS, it was a death sentence. The same could be said for various types of cancer that are relatively easily treated today. Unfortunately, there are still several conditions out there that have serious unmet medical need. 

Interestingly, while technology has been the basis for many medical advancements, once company, Silo Pharma Inc (OTCMKTS: SILO), is finding that the medicine men that lived centuries ago may have been on the right track when it comes to the treatment of conditions like fibromyalgia and Parkinson’s disease. 

What Is Silo Pharma

Silo Pharma is a developmental stage biotechnology company focused on the development of therapeutics to address various conditions with significant unmet medical need. To do so, the company is taking a play out of the old school medicine man playbook, using psilocybin, a chemical component found in magic mushrooms, as well as other psychedelics, in combination with traditional therapies to treat:

  • General Anxiety Disorder. Experienced by about 2.7% of adults in the United States, General Anxiety Disorder, or GAD, is a serious condition met with various treatment options. Unfortunately, these treatment options prove to be ineffective for a large percentage of the patient population. 
  • Fibromyalgia. Fibromyalgia is a rare and painful condition. While patients are often treated with painkillers, varying levels of benefit are realized, with a large percentage of the patient population experiencing little-to-no relief with currently available options. 
  • Parkinson’s Disease. Parkinson’s disease is a serious condition that is believed to affect about 1% of the United States population over 60 years of age. Unfortunately, the disease is known for rapid progression, and like other indications Silo Pharma is working to find solutions for, is met with few, largely ineffective treatment options. 
  • Cancer. Most recently, Silo Pharma announced that it has executed a sublicense deal surrounding its targeted psilocybin cancer therapeutic technology. 

A Market Opportunity That’s Hard To Ignore

Should Silo Pharma bring a therapeutic option to market for any one of the indications above, the potential opportunity would be hard to ignore. Just look at the size of these markets:

  • GAD. Total market size around $13.03 billion. 
  • Fibromyalgia. Total market size around $1.9 billion. 
  • Parkinson’s Disease. Total market size over $4 billion. 
  • Cancer. Total market size over $400 billion. 

Keep in mind, I’m not suggesting that should the company bring a treatment to market for one of these conditions, it will take 100% of the correlating market for that condition, but it doesn’t have to. We’re talking about a company with a $22 million market cap, targeting massive, multi-billion dollar opportunities. Should Silo tap into even a small percentage of either of these markets, the revenue generated would be significant.

Financial Stability

In most cases, when we talk about developmental and clinical-stage biotechnology companies, the big issue is financial. Ultimately, it costs quite a bit of money to develop therapeutics, and to access that money, many in the sector look to dilutive transactions. 

In the case of Silo Pharma, the company is well-capitalized, giving the company a strong financial foundation on which to build, which will help the company avoid the revolving door of spending and fund raises often seen in the biotech space. 

Partnership Exploration Is Going Well

For a few months now, Silo Pharma has been exploring potential accretive partnership, and that exploration has paid dividends. Just eight days ago, the company finalized a sublicense deal for its targeted psilocybin cancer therapeutic technology. In the beginning of March, the company announced that it had entered into an agreement with the University of Maryland, Baltimore, surrounding patented homing peptides to target rheumatoid arthritis. And in February, the company licensed a novel peptide-guided drug delivery technology for the treatment of multiple sclerosis, or MS. 

The Bottom Line

The bottom line here is that while Silo Pharma is lesser known among the investing community, it represents an incredible opportunity. Moreover, the fact that the community hasn’t caught on yet means that the stock is seriously undervalued. 

Since at least 3700 BC, humans have been using psychedelics as a form of medicine. However, in the modern world, it wasn’t until very recently that we’ve even considered the option. 

Through hundreds of more recent years of use of psychedelic compounds to treat various conditions, these compounds have been proven to have a medicinal effect in several areas. So, Silo isn’t trying to recreate the wheel, it’s merely tapping into a proven way to go about treating many ailments that leave few options for patients. 

At the same time, the company is well-capitalized and executing well on its partnership exploration. All in all, SILO stock is one to watch closely.

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Disclosure: This article was published as the result of a monetary relationship between CNA Finance and Silo Pharma.