PAA - Waiting in the wings

Excellent discussion on this forum...

Just a few thoughts if i may.

Firstly, its important to note that PRR an oncology junior like PAA, has moved from 1.8c to a high of 6.5c in the space of a few days. It really shows the interest and heat in the cancer space. No doubt that PRR deserves it, having been able to demonstrate a statistically significant progression free survival for patients being treated for ovarian cancer. In addition, they've managed to secure over $15mill funding and have partnerships with major global pharmaceutical companies.

A careful look through the history of PRR however, will provide great insight into the likelihood of success of their number one priority drug... in fact, it is eerily similar to what we are seeing here with PAA.

While PRR is capped at around $100million, PAA sits at $12million. PAA's achievements thus far indicate that the same fate awaits them. There is no doubt in my mind that PAA has all the ingredients to be a $100million company, which would be almost a 10-bagger from these levels.

- Firstly, PAA have been able to demonstrate the PPL-1 (Monepantal) is not only safe in humans, but it results in significant reduction in tumour markers which have been shown to correlate with tumour progression. It is important to remember that these are not patients in remission (like PRR)... these are patients that are dying. They have end-stage active disease and have failed all standards of care. Despite this, PAA's drug has shown to reduce their tumour markers drastically at the lowest dose. It will only be a matter of time before we see the effect of higher doses and longer durations of medication. WHEN PAA are able to demonstrate progression free survival, it could replace the market leading drug Herceptin, which currently rakes in about $6.5billion per annum do to its lack of toxicity and the yet to be determined efficacy.

- Secondly, PAA have demonstrated that similar effects have been elicited in canines using PPL-1. Not unlike PRR, PAA have a partnership with one of the top 5 global pharmaceutical companies with relation to development and research of PPL-1 for canine use. Add to that the fact that another Japanese firm has jointly filed for Patents for further analogues of PPL-1 and we can see that the commercialisation of this drug is not a pie in the sky thought, but a very deliberate and calculated plan.

- Lets not forget that PAA is receiving stable revenues through Pitney pharmaceuticals either.

Basically, PAA could go ballistic at the drop of a hat, just like PRR has done. It might be the next announcement, it might be further developments, or it might just be a group of serious investors taking a stake... but at current prices and in these markets, you can not go wrong picking PAA.