As someone who came on board early in the year, I’m very happy...

As someone who came on board early in the year, I’m very happy with the company’s administrative, scientific and market progress.

Being a retired investor I’ve have ridden the course with a few biotechs over the years. I try to follow logic and not get too attached to a stock or let emotions rule at the buy/sell button.

I’ve previously contributed the following: “Small cap biotech’s like PRR have history against them. In my experience, most fail. The FDA process is daunting and inexperienced investors should not think otherwise. Unlike most though, PRR is already over many of the hurdles.” Nothing’s changed.

So at this point, sitting on a tidy paper profit, I’m asking myself what, on balance, is fair value for PRR? Although it’s tricky to line them up, the only point of comparison I’m aware of in the cancer vaccine field is Dendreon, clearly a couple of years ahead in progress through the FDA processes with Provenge, compared to Cvac.

As of today Dendreon’s market cap is about A$3.5billion. At 26 cents my guesstimate of PRR’s cap is about A$135 million. So as of now, Dendreon's capitalisation is about 26 times that of PRR by my calculation.

I’ve concluded that PRR is still undervalued, has a product with great potential, good management, and most importantly has gathered an excellent set of scientific professionals to facilitate the trial process. Funding is there and DNDN is establishing a pathway to commercialisation for PRR to follow. I suspect large pharma must be keeping an eye out as well. The potential of CVac makes PRR an attractive risk at this price in my view. The downsides for me are the risks associated with any FDA trial and the dilution that must accompany trial funding.

So while the traders use PRR as a plaything, I’ll be taking a small profit to get a free ride, watching the announcements, and holding to capitalise further on the potential of the company.
__________________________________________________________
We all do our own research and go with our hunches and biases. You’ve just read mine. Good luck all.