Pitt street research summarising what we already know, but good...

Pitt street research summarising what we already know, but good to hear it again . Only a matter of time before a hedge fund wakes up to the opportunity, then the PVL overhang will become a distant memory .


""Percheron has significant upside potential as its share price is currently attributing no value to HMBD-002. This stock has dropped to cash backing. In other words, its market capitalisation only reflects the company's ($9m) cash balance that will be used to fund the next stage of HMBD-002's clinical development. There is no value whatsoever ascribed to HMBD-002. It is true that HMBD-002 has some way to commercialisation, but neither does it reflect the potential it has shown. In one sense this may reflect continued disappointment over the discontinuation of the legacy program and uncertainty as to the future direction, but we think investors are not appreciating the new opportunity the company has in HMBD-002. Percheron's closest peers (i.e. fellow Phase 2 or pre-Phase 2 oncology stocks on the ASX) trade at an average market capitalisation of $78.8m which would represent a share price of $0.064 per diluted share. At the higher end, Phase 3 oncology biotech Immutep trades at over $350m. Moreover, we have modelled multiple NPV scenarios and these all derive valuations in the hundreds of millions of dollars which would represent enormous upside for investors today, but still represent a bargain for potential M&A suitors""