Here’s my rough “back of the envelope” valuation for IHL-42X...

Here’s my rough “back of the envelope” valuation for IHL-42X assuming a drug is created.

Resmed on track to produce A$5b revenue for the year and this is estimated to be 55% of global CPAP revenue. So global revenue is therefore approx $9b.

Could an OSA drug disrupt 5% of this market? Absolutely.

That would be $450m per annum. Even on a 10x revenue basis that’s a market cap exceeding $4.5b.

10% disruption would be $9b valuation.

And there’s no value assumed for all the other promising clinical programs.

Now I’m sure you could shoot some holes in the numbers but I think that’s actually being really conservative.

The point is the prize is significant and watching the daily price volatility often makes you lose focus on what this management team is on track to achieve.