As I have previously said I feel the company’s drug has potential.
As far as any takeover is concerned it has been stated here ( and agreed by management) that early stage drug companies are usually attract more attention by the majors after successful stage 2 clinical trials . To get to this stage obviously takes time and money and I often wonder if that’s what the predatory potential purchasers watch for . Unfortunately if the developing company runs short on funds - by exhausting shareholders after many raises then it puts them in a poor negotiating position. They may along the way do license deals etc but that may lead to a less attractive proposal from a buyer .
To get to phase 2 requires a focused team not being side tracked , financial prudency, etc etc
All of the above leads to the question is to when as an investor is the “ best” time to buy .
Get in early - low entry price but be prepared to hold for a number of years and possibly dilution with more raisings if unable to participate. Money is tied up and potential missing other market opportunities. Risk of competitors or drug redundancy etc. General market downturns etc
Buy later - closer to results . May have to pay more but success possibly more assured .
There is no right answer and different options will suit different investors.
Charting is retrospective and can give you an idea of a general trend . There will be spikes in price due to expectations of results , good news etc and lulls when “nothing “ seems to be happening or when money looks tight .
Just some ramblings
Investing in biotech is not for the faint hearted . Good rewards if all goes well and heart ache if not . That’s the casino called the ASX small cap sector
no advice and hope shareholders do well
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