Thanks to playez for injecting a dose of reality. Was there anything really groundbreaking in today's announcement? The success of the trials was largely anticipated, consider what would have been the outcome if the company stated that they couldn't get therapeutic amounts into the bloodstream for the daily application and that they would have to halt commercialization plans while they go back to the drawing board? Can you say VHL?
I don't want to minimize the significance of the announcement, it is another step closer to commercialization but that was already largely in the price IMO.
Most agree the science is a winner and there is little left to prove, it is the money that is the problem. As long as there is the perception that the company has to come back to market in a significant way it is hard to see the stock moving substantially higher.
Those that wave away capital raising as a small issue should think again. What is the appetite going to be after last time, when if you had waited you could have picked up the stock at a 30% discount. Consider that with the amount of stock outstanding at the moment this company would have to earn $75m NPAT just to produce $0.10 in eps. How many years are we away from numbers like that?
We all know what is required, a deal with upfronts to carry the company through trials to commercialization. Imagine POH announcing a deal that would see them through to commercialization with no need to come back to market. That would really put a rocket under the share price. Hopefully the newly appointed 'heavyweight' execs can't pull their weight.
POH Price at posting:
10.0¢ Sentiment: None Disclosure: Held
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