100 Banger?, page-42

Hi Risiko

I do agree with some of the points that you make, particularly in respect to wild unsubstantiated assertions of massive share price increases in the near future. Some of those starry-eyed posts border on being child-like, and I also find it annoying needing to waste time reading them in order to determine that they are valueless. Still there are several long-term posters who are prepared to make efforts to research and provide useful information and opinions to the forum that makes participation worthwhile for everyone.

Having said that, I do believe that the technology backing both business divisions of the Company is of sufficient quality that its share price in a few years time easily could be closer to $1 than to where it is at present. Clinical trial success in any of the Midkine programs would act as a sufficient driver to cause an increase in value of this order, as it has for other biotechs. A major contributor from the Consumer Health side will be the pending engagement with the two most powerful economic forces on the planet – the Chinese thirst for modernisation and the US female consumer.

If you look at the share price history of any successful biotech you will see that a final substantial SP increase is preceded by years of flatlining. This is a characteristic of the business. Those backed by weak science disappear before that increase occurs. The “continued issuance of shares to keep the coy afloat” prior to being profitable also is a necessary characteristic of the business. The alternative is that it doesn’t stay afloat. The fact that the Company has been able to do so for so long before reaching its current transformational stage is in fact a measure of its strength.

In relation to the cost side of the ledger that you refer to, the last half dozen 4C reports indicate that operating costs per quarter have stabilised at around $1.8M. With OTC revenue growth expected to grow by at least 100% year-on-year over the next few years it should not take long before costs fall on the minor side of the ledger.

Cheers