OK - let's dissect your post.
1) Less of X (product/cash/progress in the clinic)
First, and most importantly, both companies have very different market caps: IMU 994.0M and RAC 274.3M. So, if you are to buy IMU at current price, you'd be paying extra for those assets.
2) Comparing pipelines
It is very hard to compare drugs but ultimately you need to look at the overall commercial potential - it's not just about the sheer number of drugs. IMU has a very diversified pipeline. RAC so far has a single asset (Zantrene). I haven't done enough due diligence on IMU but I know that there are 10 target diseases. Zantrene has the potential to treat 27 cancers. That is a potential peak sales between USD 2.6b and 120b (blue-sky, excluding non-cancer indications).
What also makes a big difference with RAC is that Zantrene is the first to enter the clinic as a new class of drug (FTO inhibitor) with little to no competition for years to come.I would assume IMU being in Immunotherapy would be in a more competitive market, and (unsure) not the first in class. Of course, developing a drug in a totally new field is a bit more speculative, but could yield great rewards.
3) Progress in the clinicI would add that Zantrene is a phase i/II asset with phase 2 trial to start this quarter. Also, the orphan drug designation could get to market quickly. So, I don't think of RAC as lagging too far behind IMU's phase II assets.
4) Zero progress, fundamentally, for years
This is where I really disagree. First of all, the RAC story really started only in late 2020 when Zantrene was identified as a potent FTO inhibitor. The company today has nothing to do with the one prior. Secondly, RAC has made a lot of progress in those 2 years. A lot of pre-clinical work completed, all very positive results. Strong historical safety (phase 1) data, meaning RAC can carry on with phase 2.
RAC strategy is to move FTO pillar forward to the clinic as early as this quarter. The company is working an ambitious plan, doing it fast, and very importantly, doing it with minimum cash burn.
3) RAC’s share price has not been acting in the same way as other Biotech’s in the last week or so. I’m genuinely wondering why?
Overall, RAC has followed the biotech index over 6 months but it seems the gap is widening a bit lately. RAC has just passed a key resistance point which is creating a bit of panic, amplified by very tight volume.Sad, but it is what it is.
I'll finish by saying that I have been planning to buy some IMU for a while but have been hampered by lack of cash and bear market conditions. I think both companies could have plenty of upsides moving forward and wish both a big success.
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