undervalued???

Article taken from internet
Biota Pharmaceuticals (NASDAQ:BOTA) - 17.5% Allocation. Biota is a name I initiated as a buy on October 20th, citing the company's significant cash balance, solid pipeline, and respectable revenue streams as providing a great risk/reward. I reiterated my sentimentson February 9th after a sold year-end report. While the name has been up 20% since my initial recommendation, the stock is currently down 5.9% since my October piece. The name remains extremely underfollowed, as illustrated by the grand total of zero comments on my February article.

BOTA data by YCharts
Management continues to work to identify ways to bring value to shareholders. On February 26th, the company announced that it would acquire Anaconda Pharma for $8 million in cash and 3.5 million shares of Biota stock. Through this deal, the company acquired a pipeline led by AP611074, a direct-acting antiviral for the treatment of genital warts and recurrent respiratory papillomatosis. HPV types 6 and 11, the most frequent virally transmitted sexual diseases, cause both of these ailments. The company plans to begin a phase 2b trial for AP611074 in H2 2015.
Additionally, the company recently began dosing in March for the phase 2b trial of vapendavir in patients with HRV and moderate-to-severe asthma with results expected in Q2 next year. A full list of pipeline catalysts is listed below:
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Source: March 2015 Roth presentation
With $93.4 million in assets as of year-end (mostly cash, cash equivalents, and receivables) and $82.4 million in shareholder equity, the company is in good shape financially even with the $8 million outlay for the acquisition, deserving much more than a $79.7 million market cap. The company typically sees 75-80% of annual royalty revenues from Inavir and Relenza in the quarter ending March 31st, providing more near-term cash flow. Given solid financials and significant progress in the clinic, the market is being overly negative. The company was able to bring in an attractive asset through a small cash outlay and minimal dilution, making what was already an attractive stock an even better buy.