BUBBLING!2 Jan 2021 10:17
https://lemminginvestors.blogspot.com/2021/01/my-2021-picks.html
Synairgen (SNG) 140p is a potential lotto ticket. We have already seen the excitement this company can offer on the back of a good RNS. I was foolish enough to cash in on what I thought was a healthy 195% gain in early trading...I left 300% on the table. The share price had since retraced to levels still under the 175p when it raised £80m, now at 140p Synergain is bubbling again.
The big hope here is for the therapeutics SNG001 provides supplies with an answer to Covid-19 which is on the FDA fast-track for possible review for FDA approval. PHASE 2 has already demonstrated significant benefits, good enough to be published in the world-renown Lancet. Synairgen has teamed up with Parexel to enable such a large amount of research to be conducted and ''enable rapid approvals worldwide.''
CEO Marsden says if all goes to plan ''we would have finished a phase II and III programme all in one year, which is very unusual.''
Fireworks are expected if the FDA gives the go-ahead having implored Synairgen to slightly modify and reduce the phase 3 parameters.
Also worthy of note has a fibrosis drug licensed to Pharmaxis, which should be licensed out to 3rd parties for which Synairgen gets a 17% of upfront milestone and royalties.
Key Event
If SNG001 gains FDA approval I seriously doubt Synairgen will survive as an independent entity, it will almost certainly be gobbled up by a larger pharmaceutical company. This is not just my opinion, it is the opinion of city sources. If I am correct, then Synairgen will command multi-bag status from here, possible ahead of Open Orphan. Without checking, I think Numis has a valuation of £9.90p anyway.