Blencowe Resources: Aspiring to become one of the largest graphite producers in the world. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The point is though - nothings changed. Its still a great buisness hoping to create ground breaking achievements. We have funding till the end of the year - we raised in March. Everyone knew that - why would you raise unless you needed the money. What were people expecting to read in the RNS - 'we have sufficient cash and raised because we like have lots and lots of cash in the bank but didn't really need it' ? We have a covid trial coming up and 4 phase 2 studies. Thats huge and all at a mkt cap of £50 million. Anyway, people make up their own decisions. This will be over £3 by year end
Not sure bunsenburner that people will be convinced with a few firework type statements e.g. payments will only be worth $1bn after years of trials and well into sales, if successful (as per 14:01 post). We need some notion of progress before then and ... regularly.
Anyway, if people had been better informed today they might not have sold. Patience? Yes but not without sufficient information!
Payments worth $1 billion. That’s huge. Broker note of £5. We know the value, it will happen. Just be patient. I topped up again 45.5p. Crazy price. This will bounce. Trust
Pharma and biotech are at an inherent disadvantage because of long timelines. In the last two months or so they received a lot of attention because of Covid-19. That's a good thing as the market has become more aware of them. However, investor attention span is short, especially for those who are sector agnostic.
The only way pharma and biotech companies can overcome this inherent disadvantage and capitalise on the unexpected (welcome) attention they received is by by giving a sense of progress in their long projects which could last a number of years: it's not only positive or negative results, it's also the milestones even small, but important ones (progress in recruitment of patients, give a sense of timing). Furthermore, they should explain such progress in a way that non-sector specialists can understand (as much as possible).
Also DDDD should take a look at the evolution of its share price over the years. But ... it hasn't had any major failures, recently at least, or has it? In fact, the target price set by a broker is circa 500p. So ... could it improve on communicating better with investors?
It was a poorly written results RNS imo. They missed opportunities to add fact to guidance and that’s what’s psd the market off. The historical stuff and huge losses are the territories of biotech’s. They could have given more guidance on the milestone payments and more on the read out timelines. I’m now confused as to what is happing is it all hands now to oncology? If so what’s the time line on the rest, oh don’t know we sacked the admin staff. Ffs get a grip set out clear concise objectives else AIM will knock 15-20% off in a blink.
All that said I’d like to think I recognise value and sub 50p is a price that I didn’t expect and now is probably the best time to buy while the BoD pull themselves from frigging lock down apathy. Yep I’m being harsh but look at the sp. the next update will be much better, hence I added today. All imo.
Trek
Having said that, the company should have spelled out progress on those various fronts / exciting projects and the Merck collaboration. They missed an opportunity to do so today. I'd like to think that it is not a beginner's mistake causing a 15% share price drop, but that they are expecting to announce some developments very shortly. In the case of covid-19, when you announce fast tracking then you should follow up with progress in a short time frame.
OK even though they didn't announce any specific news today's RNS was upbeat:
"... as we generate robust clinical data with multiple shots on goal.", and also:
."..as we look ahead to a pivotal year for 4D as we reach key readouts from multiple clinical studies."
But that's not all. Let's not forget:
"Entered a research collaboration and option agreement with MSD (Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Kenilworth, NJ, USA) to use the MicroRx® discovery platform to develop Live Biotherapeutics in the vaccines space, including an upfront payment and potential milestone payments totalling >$1 billion"
Ok we first need to see which candidates will be identified by Merck & DDDD. Then, the milestones will be on trial over a period of years. However, Merck would not have bought shares in the company if it didn't mean business.
Even before we talk about sales royalties, the payments can reach US$347m as per RNS of 8-Oct-2019: "... In addition to an upfront cash payment, for each indication, 4D will be eligible to receive up to $347.5 million in option exercise and development and regulatory milestone payments, plus tiered royalties on annual net sales of any licensed products derived from the collaboration."
Such amounts, even before hitting sales, could totally transform the size and clout of the company. Merck has committed already through the purchase of shares. OK the amount invested to-date, notably $5 million, is not a huge amount, but it is more than enough to indicate commitment by MSD and confidence in DDDD.
There are also examples of MSD's pursuing of deals in collaboration with biopharmaceutical companies:
https://www.businesswire.com/news/home/20200526005229/en/Merck-Ridgeback-Bio-Collaborate-Advance-Development-Antiviral
So it may well be Merck's turn in the next few months.