Pigsy - I posted a reply on the PRR post last night. A bit philosophical - however point I wanted to make is that investing in biotech stocks is an inherently risky pastime.
If the hypothesis that you are testing is fundamentally flawed, then similar research results will follow (interestingly Dendreon a biotech listed in the US was using similar technology to PRR- "primed dendritic cells" to elicit an immune response to cancer - and had a spectacular fall approx 2+ years ago - so those investing in PRR should have probably taken some head from the Dendreon experience).
Moral of the story here is the if your science is fundamentally flawed or fails to show any significant improvement from clinical trials - then the ability of your promoters, ability of your company to get access to easy captital, having high profile board members, pushy CEO's etc means jack ....
Fortunately there continues to be a fair amount of risk capital out there landing on specie biotech stocks which have become "flavour of the year"(some a little dubious which have shown spectacular recent SP rises - ECQ? NEU?).
Now we have a spectacular fall in PRR and a significant drop in the SP of AHZ today.
Who knows the next one could be MSB - I hope not - but anything is possible?? - if so lets hope the retail investors dont get burned (MSB huge market cap, "interesting hypotheses" - particularly the action of cardiac stem cells - injected remotely from the heart resulting in an improvement in cardiac function??, mutiple research programmes at different phases, but as yet nothing has been delivered successfully to market??).
Hopefully some of this "spare" risk capital can find a home with PAB (assuming biotechs continue to be attractive to those who have either got out of stocks like PRR early or who haven't been burnt by the PRR experience?).
We will however only know in hindsight which of todays specie biotechs become the future CSL's, RESMEDS, ACRUX's etc.
However PAB has many of the characteristics of a successful biotech in the making - hopefully??? this will be revealed in the fullnes of time.
PAB Price at posting:
3.6¢ Sentiment: LT Buy Disclosure: Held
