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kiwig

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28/03/23

20:55

Post #: 67007616
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Originally posted by triage: ↑

The always excellent poster, @vintage on the EMV thread has cut and pasted an article by the always impressive analyst, Alan Kohler, on the problems and possible solution for Australian biotechs. Rhythm gets a mention:

"The reason those companies [CSL, Cochlear and Resmed] became Australia’s trio of global biotech champions is that they took their products through to the market without selling out – that is, they managed to raise the capital required to do that, mostly through internal cash flows.

However, 80 per cent of the rest of the industry are “pre-revenue”, which is a nice way of saying they burn cash, they don’t generate it.

For example, last week I spoke to Michael Winlo, CEO of a company called Emyria, which is trying to commercialise MDMA (ecstasy) for treating PTSD and other mental illnesses, as well as cannabis. The company is burning $500,000 a month, has $2.7 million in the bank and is years from commercialising its treatments.

Or Rhythm Biosciences, whose CEO, Glenn Gilbert, I spoke to recently, and they are also burning cash. Rhythm is developing a world-leading blood test for colon cancer to replace stool samples, but had a setback recently with its Therapeutic Goods Administration approval.

Both Rhythm and Emyria have good products and will get there eventually,..."

I don't catch him on tv or read his newsletters but I rate AK as being very considered and well informed in his analysis. That he still rates ColoSTAT even after the TGA "setback" would not be him just assuming stuff I would guess. The other point AK raises is that Rhythm will likely need to come back to the market for more funds.

https://thenewdaily.com.au/finance/the-innovators/2023/03/27/alan-kohler-innovators-27-march/

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the other point is that he’s spoke to GG after the setback and still thinks that they will make it with the product.

I hope they don’t do the CR at too much of a discount. Still a lot of upside but just another painful wait. Not much point in buying when there is a CR on the card unless for oppies.

thanks for posting.

RHY Price at posting: 46.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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