RE: Info Shared with RichKen5 Jun 2020 00:55
The information is an email which contains an opinion from somebody who apparently used to be very high up in one of the pharma giants and has advised Avacta in the past. The person who has typed the email doesn’t appear to be the source, so there could also be an element of ‘Chinese whispers’ anyway.
The email raises the following concerns in regards to investing in Avacta. In no particular order, just the order they are raised in this email:
1) Avacta are only of many biotech firms in the “test race”
My view: In a broad sense and including anti-body and antigen, yes that’s totally true. In terms of a rapid point of care test, it’s just Sona Nanotech and we expect to have a better and cheaper product than them – all being well of course.
2) Avacta are not very diligent before going to market. Such as basics tests not done, insufficient trails, tolerance test. Not good quality science.
My view: No idea if this is true or not, but it’s with Cytiva so not really relevant assuming the Affimers work - which we’ve already been told they do.
3) The test has not yet got regulatory approval.
My view: Quite right, and that’s why it’s £1.50 a share.
4) Share price rise is caused by BooHoo link up
My view: Maybe partly, but it had already gone from 20p to 150p before it went to 200p. We are back at 150p now anyway, and the fall was largely due to placing anyway.
5) Richard Hughes invested in Avacta about 5 years ago and since then the share price has gone up. He’s made a killing and might start off loading his shares to see return on investment.
My view: Big investors in any company could do this at any time, what’s the point here? Furthermore, the real money will be in the cancer therapeutics further down the line. Why offload now and miss the big show when you’ve been in for years already?
6) Big pharma’s are already in there with our Government eg AZ, so who would you put your money on?
My view: Well, the UK is a tiny market vs rest of the world And Covid is a bigger problem in other parts of the world than it is here. And even so, current testing can’t keep up. And it’s not even the same type of testing we have anyway! We are expected LFD device, plus BAMS which should give higher throughput and removes the swabbing issue. Not sure what the point is here exactly.
7) There is an appeal to investors who don’t fully understand the science behind the stages to get an approval.
My view: Probably a fair comment to say most of us don’t know the approval process. I not ashamed to admit that I don’t know. However, the LFD especially will have a massive impact in a world where economies are being devastated and many lives lost. If it works as we expect it to, are any Governments going to block it with red tape? I think not! Covid approvals are being expedited!
There you go, you can all sleep well tonight.
Thanks again to Shaheen for sending this to me. I can understand why he didn’t want to post it himself. PLEAS
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