I have frequently observed this in ASX listed biotech companies, from DXB to NEU and numerous others. Eventually, the realisation dawns.
Price is incredibly lower here despite seeing efficacy of oral small molecule ILAs in human trials after a 3 year wait.
While ILA appears undervalued on ISLA-101 alone, the new drug seems to hold no value despite extensive development, including USD$70 million in US government funding over 10 years. Preclinical work, multiple Phase 1 trials, and even a Phase 2 trial have been completed, addressing a significant unmet need and attracting government and military interest. Accelerated approval under the Animal Rule (The Animal Rule offers a regulatory pathway for approval based solely on animal data and Phase 1 safety data, provided efficacy is demonstrated in reproducible animal models) and potential for further subsidies (non-dilutive funding) align with US military preparedness to leverage government support rather than dilutive funding, such as through BARDA.
This drug I.e., galidesivir has the potential for rapid FDA approval and a Priority Review Voucher (PRV). If this occurs, the PRV could be sold for $100 million+.
At any rate, like the others I mentioned earlier on, I am confident the penny will drop, especially with the likes of JC and DT on the register, and David at the helm, with the expert counsel of the highly experienced Peter Lynch and Chris Ntoumenopoulos. I.e., I can't see the opportunity being squandered with this A-grade team with extensive big pharma networks and experience.
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