Virax is an interesting stock, some exciting technology but it's been undercapitalised for years. However they have managed to secure non-dilutive funding for a good sized trial in Africa.
They saw some good results from a phase I/II trial... the market spiked the price but it's been in no mans land ever since.
The Transgene arrangement looks like it may finally produce some decent dollars, enough at least to provide some vital capital to the balance sheet. The interesting part will come in 2010 when they release results from this African trial, results which could confirm earlier findings and hence allow them to perhaps license the program or at least take it further.
Since DNDN's confirmation of theraputic vaccines, the market has pushed up stocks even in Australia which have promising programs for example PRR which now have a market cap of around 88m. VHL's market cap is around a tenth of PRR.
So, question is will VHL do a PRR, and if it does then what may be the drivers? It's a speculative stock due to the cash balance and not having sustainable profits but this may soon change with the Transgene arrangement. If they can get a boost to the balance sheet and show the market the prospect of ongoing royalties then perhaps the market will start to value their program with some real numbers.
Key items to look for:
1) Transgene payments
2) Results from clinical trial is Africa
Does anything think VHL will finally come good?
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