Hi guys, I don't think CYC has any intention of buying back shares at current prices. They seek buyback approval to give themselves the option of buying back shares should an opportunity arise. Chairman Vanda Gould confirmed this at the AGM.
Essentially all of the surplus capital will be used to fund US FDA approval.
While doing this alone is a higher risk/reward proposition compared to the arrangement with Jubiliant, the path to FDA approval has been simplified significantly since the last attempts. The FDA compromised after considering the 3.5m safe Technegas administrations which have occurred globally to date.
The trial is not testing the effectiveness of Technegas per se. The FDA trial is seeking to test two things. In very general terms, 1.) is to investigate whether Technegas inflates the lung as good as Xenon 133, 2.) is whether a Technegas administration causes any adverse side effects, which requires a series of patient blood tests (eg right after, 1 day after, 1 week after and so on). Xenon 133 is competing technology which Technegas has displaced from the Canadian market.
Cycloharm is very confident that it can easily meet both aspects, as they have been doing so for years. This suggests the risks are skewed to recruitment and execution. Cyclopharm have been working with a Clinical Research Organisation called Certis who are experienced with clinical trials.
Company insiders that I have talked to have a lot of confidence.
CYC Price at posting:
64.5¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)