Last night Disc released 2023 results and these show just how...

Last night Disc released 2023 results and these show just how seriously undervalued Clinuvel is. This is a direct apples/apples comparison because Disc is targeting EPP with their lead molecule while Clinuvel enjoy an absolute monopoly in EPP and will for years to come. It can be seen it is actually a big ripe, juicy apple in CUV compared to one which is not much more than a flower on the tree at this stage yet amazingly the little flower is valued about 3.5 times more than the big, juicy apple. Disc LOST $76.4 Million USD ($116 M AUD) last year running Phase 1 and 2s, while CUV made last FY $31.6 Million PROFIT after taxes. Clinuvel already running a phase 3 into a blockbuster indication in Vitiligo which we know works and this with an already FDA, EMA approved drug that is proven safe so the process for approval is much easier than a New Drug application which Disc will have to file if they get to that point. In my opinion Clinuvel will have Vitiligo approved and commercialised well before Disc can even attempt to enter the EPP market - and Disc have many hurdles to get over before they get there.

Also as I mentioned recently, from what I read, even if Disc is successful in many years in entering the EPP market they will have to pay royalties to the company they purchased the trial molecule from and they will also potentially be making very significant milestone payments of tens (maybe hundreds) of millions of dollars! Clinuvel is vertically integrated and none of this is an issue for investors where profits are shared amongst just 50 Million shares. And as we know that 50 Million shares will reduce to 48.5 Million after the first? CUV share buyback, meanwhile Disc will have to raise capital at some point IMO due to large scale cash burn.

So why are Disc much more successful in attracting investor interest despite the prospect of the company just losing money for many years to come, and with no guarantee they will ever get an FDA approval which would obviously be catastrophic for Disc? And even if Disc are successful they may have to share any future profits. Clinuvel, well they have a monopoly in EPP for years to come, and if successful with Vitiligo they could likely become the standard of care for a disease that has worldwide incidence approximately 1% of the human race.

Loss making Disc makes significant losses, which is ok for this stage, but they may never even get that approval and they certainly don't make great profits like money-printing CUV yet they are valued at ~ $2.3 Billion AUD while CUV languishes at about 0.7 Billion (with $175M cash). Risk/reward is curious with Disc valued entirely on hope and CUV with no future cash flow valuation for Vitiligo or anything else. Amazingly Disc should probably raise a bit of funding and offer cash/shares to take over CUV - CUV already monopolise the market DISC is seeking to enter with their lead drug candidate and CUV are already profitable - seems like good business sense and risk management rather than pouring money down the drain with no guarantee of success in 4-5 years time. It is really an absurd situation when the hopeful in Disc has a valuation ~3.5 times higher than the commercialised, highly profitable FDA, EMA, TGA approved market monopoliser in CUV which also has a Phase 3 running into a blockbuster - Disc certainly doesn't have that but a takeover would give it to them along with Stroke, VP, XP etc. And of course there is the newly announced CUV share buyback to begin soon that is intent of restoring value for shareholders in this very profitable and extremely cashed up company.

All IMO DYOR