reaction, page-21

I guess kpkg if i were you i would start by reading the RM research report which i have gone over here numerous times in terms of value drivers. They have put a 7.2c valuation on 3 licensing deals in the diagnostics space and evolis only. I would expect further licensing deals to come over 2013 with the one's already in place, especially the Quest 1 as a key validation point for midkine as a marker in diagnostics. Also as evolis gains market traction we will see an uplift in cash flow there. I would also expect evolis to head into overseas markets with RM putting that as a key for higher valuations.

Unlike other small cap bios CDY is actually starting to generate cash flow. I believe the therapeutics with numerous targets should hit the clinic this year and add significant valuation via CDY initiating clinical trials after deciding on its target for midkine or via a partnership. Evolis is only a new product so naturally it will pick up. As i have already posted maybe some mainstream media is needed or maybe some celebrities getting thin on the top could be used as guinea pigs to give it a go. Every night i watch AFL 360 i think Gerard Wheatley would be a perfect candidate to throw some Evolis on that head of his and get it sprouting again. Anyway Emma Chen ex Ashley and Martin came on the team and even though others here are ready to crucify her i would give her a chance to show what she is made of as her reputation for taking Ashley and Martin back from the brink can only be useful in getting Evoilis sales up. As i have posted previously and will repeat just for you. Evolis is 1 of only 2 products worldwide that is scientifically validated to promote hair growth as well as reduce hair loss. The other is Rogaine which has sales of 400 million a year but has significant side effects of increased blood pressure as well as other cardiovascular problems. Evolis has proved to not to have these associated side effects. Also evolis has been through a double blinded placebo controlled study which is the gold standard in getting approval. This basically means that it 100% works without it being a coincidence. So time will tell if Evolis can take part of rogaine's market share but many are willing to write it off already but time will tell. My bet is that it will gain its share and move into overseas markets which will be the source of increased real money that you ask for.

Yes CDY raised on the rise which in my opinion may have stopped the run we were having but also put the company in a stronger cash position. I have seen to often on other small cap bios the opportunity to raise goes begging and then is done at very low prices. Take ANP for example which had a stellar run in 2011 to 3.9c. Unfortunately they did not do a raising on that run up only to see the price start to drop. Unfortunately from there they found it difficult to find capital and had to raise via shareholders at 1.8c with pattersons involved. This has left the stock floundering for a long time now even though the potential of the company is very strong on the back of Isis and the connection with antisense technology. I was in the stock at the time and still keep a keen eye on it for a re entry as i do with many small cap bios.

On why should i not wait for the 2s to enter. Well if you read my post on the 2/12/2012 i entered when CDY was 1.5c with oppies at a real bargain and posted that it was a bargain buy. It headed to 5c and i am free riding a large position here so im content with where CDY is and is heading. It is easy to say now after the drop but nobody knows when the next bit of news may send this back towards year highs. Hope this helps.