Perspective13 Jan 2022 11:07
For those like Orc who supposedly bought at 29p, it's worth remembering that when the sp was at those levels (July 21) the mkt cap was approx. £174m. Now we're closer to £130m, but importantly in between that time there's been over £32m worth of contracts announced, and that's just those that have been RNSd. At these levels you're getting much better value for money. On historically valuation metrics the shares don't look cheap but it's important to look forward and with 95% of revenues booked for '22 and plenty of scope to add further contracts/up sell I personally believe we're in a good position here.
Also worth remembering that Orph has a pretty fixed cost base. So fewer trials still incurs a similar level of cost to having a larger number of trials which would obviously generate far greater revenue which In turn would filter down to the bottom line.
Also worth considering that the 14 odd million cash the company has is worth approx. 2.5p per share, so at these levels you're getting the business for 18 odd p. Or about a £117m mkt cap.