summary of blt

A summary for interested new shareholders and prospective ones.

BLT rode a wave of excitement over a new technology in the early part of the century, RNA interference, which allows scientists to silence genes. Benitec's shareprice went well over a dollar. One RNAi company, SIRNA, was taken over by Merck for over a billion dollars.

RNAi can target genes in cancers, viruses, or in genetic diseases. This allows unprecedented power in medicine, and Benitec owns the patent to what many see as the most powerful gene silencing technique, ddRNAi, which allows the permanent shut-down of an unwanted gene, and therefore the potential for a permanent cure. ddRNAi usually uses a genetically modified virus, such as the adenovirus (a common cause of minor respiratory infections) or lentivirus to infect the cell and therefore make a permanent change in the cells.

It can be said that Benitec's delivery method is as easy as catching a cold, but this overly simplifies things. You have to target the right genes and make sure there are no untoward effects. Much research has been done in animals, but not much in humans yet.

Then in the middle of the decade, expensive and protracted legal fights broke out to try and own the patent space. These fights dragged on, destroyed some companies and crippled others, including Benitec, and share prices of all RNAi companies plummeted.

Finally, Benitec won the main patent battles late last year/early this year and own the patents to arguably half the patent space of all RNAi technology, and arguably the most important part.

For the last few years, to keep afloat, Benitec was involved in a poisonous dilutive deal with LaJolla cove, which is like Springtree, where they were regularly awarded shares at a discount for funding, and they regularly sold their shares so any positive sentiment was met with instant selling down.

Recently Benitec recapitalised and ended this poison. Now, significant developments will not be constantly sold into and should allow the share price to rise.

Benitec recieves small regular payments from licensing for genetic research material and small dividends from Tacere, a licensee. I am not sure if more can be made of this now the patents are more established.

Benitec's patents are worth much more than Sirna's patents and cover a much wider area. Benitec's patents cover a much wider area than, say, Mesoblast. Anyone who commercialises a new drug from this technology will have to do a deal with Benitec. However, the hype of the early days is missing now, so it will take much more than just promise to move the share price.

Nevertheless, besides Benitec's direct programs, there are milestone payments payable on progress of the Pfizer partnered Hep C program, there is an ongoing HIV program, and breakthroughs on these fronts could mean dollars as well as validation of the technology.

I am very excited about the power of the Chinese to advance the Hep B program much faster than we have ever seen before. A deal with a big pharma or even a takeover attempt is always a possibility.

There is much more that can be written, but I hope this is helpful as an initial summary. Others, please feel free to add to this.

I mostly post on science/medical aspects of this as this is where my expertise is, and I hope it proves useful. I have greatly enjoyed and appreciated other contributions to this stock's discussion and many have been here for longer and have a greater depth and appreciation of the history of this stock.