Ann: Appendix 4C and Quarterly Update, page-51

Hi Lf, generally agree with your sentiment and would also factor in a couple of points that further de-risk this one for me.
A) Management has demonstrated themselves to be fiscal conservatives - no rash spending, breast beating etc
B) "My" understanding is this phase 2 trial is for all intents and purposes a re-run of previous work primarily required because of the previous taste problem - now already demonstrated to have been overcome.
C) their business model includes ongoing manufacturing so that even if this phase 2 trial does not go well they have a built in fall back position that has been upgraded in recent times, plus the opportunity to further develop other early stage product.
D) the option / first refusal deal sitting on the table with Elanco plus the money in the bank basically replaces the need to have a fist full of dollars going into any negotiation with a third party.
In short they seem to have covered all the bases of de-risking any impending upside. Again for my money, the relative tight register means any serious player wanting a seat at the table is now going to have to pay to play.
Way better bet than say a small manufacturer in the street lighting sector ! - no matter the product potential it is really about the people at the centre of the game and in the case of PAA I for one am impressed by the way they are putting this together - conservative but thorough and "appear" to have the interests of the existing shareholders as one of their core values.