where are we at in the cycle ?
Biotech sector has had a ripping ride for the past decade - things changed dramatically March 2022 when QE - stimulation was cut off since that time thousands have been laid off in sector and there have been multiple small biotech shutdowns - its interesting to take a look because the number of publicly traded biotechs has also fallen dramatically - there will be more as well
those small biotechs that don't have a multiplicity of good pipeline assets will always struggle to capital raise and will be threatened in their very survival.
IHL is the opposite of this = great assets / incredible pipeline and excellent management - the recent 13 mill placement looks better and better as the months pass in 2023
News flow will be consistent and company making
others in the sector are not so fortunate
imagine if IHL needed to sell off its most promising assets to fund remaining programs pay salaries in an environment where raising capital had become a near impossibility? in fact so much so that you needed to lay off staff...Finch therapeutics are in that exact position
Cyteir Therapeutics stated it has laid off 70% of its staff as of Jan 23 and has ceased all development work on all drug candidates except for its lead candidate indication for ovarian cancer....why? it can't raise capital!
“The concern was that the market may not be favorable and we would likely not have sufficient data to raise cash,” said Cyteir Chief Executive Markus Renschler. The cost-cutting, he said, will allow the company to survive into 2026.
' Pharmaceutical and other life-sciences companies laid off 7,387 people in 2022, according to the most recent data from global outplacement firm Challenger, Gray & Christmas Inc. In January, the sector had 1,449 layoffs, up from 174 a year earlier, according to Challenger. '
check electronic broadsheet 'Fierce Biotech' and confirm for yourself that 19 drug developers have announced large staff layoff plans year to date 2023....the year looks grim for the sector
Investors are leaving the sector and running for the doors seeking safer returns in high cost of money high interest rate environment .\
I posted recently Biotech ETF bubble would also pop imminently - well the SPDR S&P equal weighted index of biotech stocks has fallen 48% from its peak 2 years ago - it has further to fall
there is so much more evidence of these declining sector wide fundamentals that you will need to looj for yourself....not enough room here to post it all
NOT for those like IHL - financially risk mitigated / product pipeline development news this year will be outstanding
drugs being developed for unmet need globally - patent protection in place - great research development partnerships
and BP has stated they are looking for the right acquisitions in 2023
OSA and GAD 'arriving' at exactly the right time in all this carnage...
TGA and FDA regulatory changes continue to favour IHL and barriers continue to fall away
s
these are the facts behind the sector - not the misguided attribution of a perceived blame by those who naval gaze the SP and have no real idea why
there is no bottom in the SP - surely if the last 6 months proves anything it proves that very single point....for the underpinning reasons above -
the SP is not related in any way to the company position or product pipeline - the above should I hope highlight that simple point as well
the risk reward here has never looked better
glah - dyor
