In the latest Chairman's Update, Dr Doug Wilson uses the analogy of an oasis to describe the attraction of Phylogica to big drug companies. Investors appear more inclined to view the company image as a mirage. The share price retreat in the face of a positive news flow must create a sense of quizzical amusement amongst the executives of Roche, Pfizer and AstraZeneca.
"What are those Aussie's thinking?"
Lets go for a minute with Wilson's account that Phylogica is an oasis. Whats the evidence?
Phenomica seems a good place to start. "This joint venture is an exciting additional validation of the global unique value of the Phylogica assets and the performance of the R&D team," said Wilson.
The observation by Wilson, however, which provides the clout for self belief, is summed up neatly in his conclusion.
"The Board remains confident in achieving [cash flow sustainability] based on the Company's prospective deal flow and the continued progress of its current partnerships," said Wilson.
The continued progress of current partnerships means that the Roche, Pfizer and AstraZeneca collaborations are moving forward, not backwards like the share price. Expect significant announcements within the next couple of months. Meanwhile, 'send your camel to bed Shadows paintin' our faces - its Midnight at the Oasis'.
PYC Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
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