BNO - Bionomics Initiates Phase 1 Study of BNC101, page-3

I really like BNO's business model. It's a low-risk model, based on the value added by advancing a new drug through clinical phases, but letting a Major profit from production. At first glance, it looks bizarre, because everyone thinks that drug production and marketing is where the profits are, while the earlier phases are just costs. But the same misconception applies in the oil industry, seeing profit only in finding and producing oil while exploration is seen as just a cost : A friend of mine got very rich by taking up oil leases, surveying them, and then selling them on. The surveys added value, and would-be producers were prepared to pay well for them. BNO is in a similar game, in bio.