The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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https://www.cnbc.com/2018/08/31/warren-buffett-explains-the-enduring-power-of-stock-buybacks.html
Well ask all the other companies doing it think it's such a bad idea? Sitting on excess cash whilst you SP is attacked in a panicked market doesn't make sense especially when you have an order book of £80 million. If we don't have a takeover plan then cash is being eroded by 10% inflation so reducing the share capital by circa 10% would be prudent and currently would cost less than £5 million, it would also enhance any future dividend policy by reducing the number of shares in issue, something CF would also benefit from? Maybe you should research all the companies in the FTSE buying back their own shares despite the fact they are saddled with debt, they are actually still borrowing money whilst buying back their shares. AIMHO ADYOR!
Buying back or issuing dividents would be a moronic thing to do, trying to create the expectation that it will happen is a close second
£50K is a fair amount of skin to put in ... well done Mo that's agraet vote of confidence.
Mo has said on a few occasions that he'd buy when the NOMAD allowed, but warned that he's not as wealthy Cathal and hence some might be 'a bit disappointed' by the amount he buys.
I'm not disappointed in the slightest, and see this ~£50,000/510,204 share purchase as a very significant investment for someone who also has many other family-related cost commitments to meet. In general, ORPH employees do not have astronomical salaries, even at C-level, so it's likely a significant % of his yearly salary.
So, thanks Mo, and keep up the good work. A definite vote of confidence from him.
Well done Mo. And the SP up 14% which is great to see on another overall red market day.
As I said...watch this space...:-))
Has Mo found his wallet? Still believe throwing £5 million of the cash pile would be a very good investment for the company...not worth buying anything at the moment in these turbulent markets..no good just sitting on the £20 million as it's not making any money. Surely investment the money in reducing the share capital makes sense considering how beaten down the SP is..watch this space?
As Profitbagger pointed out last week:
"H1: Accounts receivable 13.3M vs accounts payable (ie incl prepayments on contracts) 23.7M vs cash of 15.9M"
So now cash is 20M... but that's was due further prepayments following end of the reporting period.... so are there really funds sloshing about to do share buybacks?
Also, they raised 15M two years ago so are statements made by other posters that they are continuing to grow cash monthly true? or a simply a repeat of CFs comments in the couple of years which were shown to be otherwise. The reason given for the raise was to have a strong balance sheet to impress pharma as part of winning contracts. Does it make sense to hand it all back to shareholders after sitting on it for 2 years?
OO just needs to get it's revenue up and do what they promise. The rest will follow.
50k buy at 9.8p. Someone with much deeper pockets than me! :D
Only a matter of time before the tide turns here IMO.
"Everyone and their mother has a p38 inhibitor"
In addition to the other good replies that have pointed out the absurdity of this statement... This is why Poolbeg have applied for, and have been granted, patent protection for (most) of their intended uses for POLB-001
I could have a p38 inhibitor in my sock drawer... but if I don't have the right to use it to treat certain conditions it is worth very little.
So non in the development process for severe viral infections which you don't seem keen to.mention. p38 was targeted for pain, arthritis and similar inflammatory disease and parked for less efficacy than existing drugs in most cases. Polb001 is for infection. Other p38 of course.may get repositioned too or at least may get relooked at post any positive outcome for LPS trial for pol001. It maybe that these assets in time may also get some work on them via Hvivo on specific viruses like corona and flu. There will be other anti inflammatory assets that could help long covid, acute covid, severe flu and rsv and they may also be a rich source of testing I future for hvivo. Poolbeg may also pick over these parked assets too. Poolbeg could be a longterm jewel and hvivo be reliable robust performer as margins and volume of studies increases on yr on yr basis. Challenge studies are still relatively unused in clinical development process but this is clearly changing. Both stocks are long term holds with excellent futures and hvivo has considerable moat and pricing power will follow on that front.
So most Pharma have a P38 inhibitor on the shelf but none of them work!!! Poolbeg are testing now to ascertain if theirs works
What I am at a loss to understand is why ORPH seems to have so many low margin or dare I say it even onerous contracts given its monopolistic position in the market place. Either poor or naive commercial negotiating ability to my mind.
Do I really have to? Not going through that again. If you didn't know that then you are not much of an investor, are you? Hopefully the covid crowd will disappear soon, back to your day jobs :)
In case you didn't get it, no one has an obligation to reference what you can easily find with a google search.
Many companies, including most of the major pharmas, have a p38 inhibitor "on the shelf" (as is the vernacular) with at least phase 1 data that mostly concerns safety. With that said, all of them have failed on efficacy for what the campanies was testing then for. That sort of thing matters in this business because even if OO has found a new target population for it, there is no one stopping everyone else from doing the same, unless they get an orphan drug designation, which they won't (they haven't even applied because it would make no sense).
OO has nailed it with the challenge studies, I truly beleive that (though I could still be wrong). In my humble opinion, they have nothing that isn't related to that that has real value. The sooner we get rid of all the nonsense the better. My opinion and nothing more than that. Have a nice evening.
Either a share buy back or special dividend (if the P&L account allows)
Buying back 10% or 67.1m shares at a 10p limit would be great for shareholders and good use of cash assuming the board have no plans for using the £20m that is growing monthly now.
With £20 million in the bank, I'm reckon circa £5 million buyback programme could start very soon imho! That'll take about 60 million cheap shares off the market..madness not to at this price anyone would have thought The £80 million pipeline of contracts is said to be profitable, so why keep building up the cash pile even more, that is being eroded by inflation by the way? We're not going pay a dividend or buy anything in the current climate so it's absolutely mad to sit on the entire cash pile, using £5 million of it to take 10% of the shares off the market would make perfect sense during this turmoil, loads of companies are doing it at the moment and we have no debt!
Think now may be the time to spend some of our £20m on buying some shares back. If only to cheer us up a bit!!! ATB
Takes a very special caring idividual who's not invested here to post warnings to shareholders who are invested very special indeed
Everyone and their mother has a p38 MapK inhibitor? Name 3, which biotech has them, what phase they are in and what indication they are for. Some light homework to help us dimwits understand being as you have done loads of research on this. I have time, so no rush....
They've already IPO'd Poolbeg last June...it's nothing to do with OO now, I was joking about buying it back..?
*get rid of it
Everyone and their mother has a p38 inhibitor, most of them at later stages of development than POLB. I hope they get rid of poolberg at any price. I don't mind that OO used to spread their bets, but now now it is clear that only hvivo related business has real value. Gettif of it and move on
Well looked what just happened to Biogen and Eisai pharma shares surging following successful drug trial news..maybe buying back Poolbeg would nobe so stupid after all especiallywith Polb-001 news coming soon..
https://www.reuters.com/business/healthcare-pharmaceuticals/biogen-eisai-stocks-soar-alzheimers-success-lifting-rival-shares-2022-09-28/