Ill do the entire management team - Firstly, Ill start with the point that in every biotechnology management team you need a strong CSO (alongside a wider science team) and a strong corporate finance team.
Clinical stage biotechnology stocks are some of the most capital intensive stocks on the market, often going 7-10 years before generating any FCF. Sure, the science is the bedrock of the future value as drug candidates move through the clinical development stages, but that is driven forward by primarily one thing. Capital.
A corporate finance team ensures this is done at the right time, at the right price, to ensure shareholder capital is maximised, while also managing annual operating cash burn to keep it at the lowest possible expense to the company. They should also ideally have experience in exit strategy's (M&A) to further maximise shareholder value at the shortest time possible.
Our Management: Alex Sinclair is the undisputable world leader for IIH, and is the obvious dream CSO candidate which we are lucky to have. The wider Birmingham IIH team, Susan Mollan, Mark Thaller etc alongside the Clinical Trial Steering Committee round off a very proficient scientific team; Michael Wall.
Jason Loveridge, Narelle Warren and Tom Duthy represent the corporate finance team. Jason has thirty plus years experience in the field as it relates to drug companies, M&A experience and a boat load of capital raising experience. While Tom has a decade of sell side experience as a life sciences equity research analyst, before conducting the ASX's largest medical devices acquisition in Australia's history, of $1.9B at his role with Sirtex. This demonstrates the clear need for the exit strategy's (M&A) experience that both of these two directors possess, alongside strong Investor Relations communication, in the cross section of understanding the finance and the science. Important for discussions with the FDA and potential acquirers of the company. Narelle Warren has 20 years financial management experience, with strong experience with capital raisings also, rounding off the board strongly. So,
The admin cash burn since last raise has been incredibly low at just $1M pa, this is due to our corporate finance teams decisions. People forget that the $1.30 $26M raising was achieved just 2 months into the Covid-19 pandemic, in midst of a market crash. I think that decision to raise at that price was apt, and had clear support of cornerstone investors who have held their shares tightly since. The way they have approached regulators has been strong given the FDA decision not to harmonise - posters here don't seem to have a lot of wider knowledge as to how long this can take, and how IXC really did get a move on quicker than an average company would. The company has been guided through this well, following the footsteps of CUV.
Overall, I think that the science team and corporate finance team have worked well at handling the operations of the business to this point and have continually kicked goals for the past 18 months - worthy of additional compensation. I think Tattarang and co have performed due diligence on each director and have deemed IXC as having the personnel power required to execute a Phase II and III successfully, without a blowout of costs - so far, so good.
The downside for Jason Loveridge and Tom Duthy - they are split between two companies as they are respectively the MD of another listed company and director of another. Would it be better if he was only at IXC? Perhaps, although that would no doubt come at a greater cost. Could someone else play the role at IXC other than Jason? Sure, although I feel that would be replacing an apple with an apple, as he has all the experience required to propel IXC forward.
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