I suppose I do have another concern about focusing on Adapt, and that is thanks to my experience with Alchemia (ACL:ASX) where the company managed to reformulate the extremely complex Arixta into a low cost generic first to market.
On all available figures the stock should have been worth multiples upon FDA approval of that drug with $20-30m p/a. It was already partnered and ready to go. We where also about to commence a rather expensive ph3 trial of HA-Irinotecan for $20m+. The argument was why are we blowing all our profit on this pie in the sky trial when we could be pocketing it as dividends?
Well jump forward a while and generic Arixta is delivering about $6m p/a and falling, about 20% of what was hoped for, and the ph3 is complete and about to report in a few weeks. How is the stock valued now? I reckon about 80% is the trial and 20% at best is the product that so many thought would be the driver of future profits.
You just can't tell how the future will play out with biotech, so I'm a believer in having lots of strings to your bow.
Article on news.com.au, page-60
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$18.00 |
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Mkt cap ! $346.0M | |||
| Open | High | Low | Value | Volume |
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| Price($) | Vol. | No. |
|---|---|---|
| $18.10 | 700 | 1 |
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