RE: Worth a read17 Sep 2018 14:50
I like these bits -
"Big pharma hasn’t exactly been at the forefront of innovations. But with deep pockets these industry Goliaths have been splashing the cash buying assets and sewing up licensing deals.
This is good news for Faron, which is currently fielding interest from would-be partners. Normally these deals would only be done when a small drugs company had phase II data in hand.
However, around a third of the transactions in the sector are being done at the pre-clinical phase such is the demand for new and innovative immunotherapies.
So, Faron is in an industry sweet spot and is apparently field a lot of interest."
"That means the business’ enterprise value (market cap minus around £10mln of cash) is around £21mln.
This ascribes very little real worth to Clevegen, and zero prospect of eking a return from Traumakine."
"Just as the stock was probably of over-bought when it shot to 890p, there is a good argument to made that it is now oversold."
"And of course, the successful conclusion of a Clevegen out-licensing deal would be deemed as a big positive – and one not currently fully factored into the share price."