Q: Your comments on SVA. Is it a Hold or a Sell? Thanks
5i Research Answer:
With the stock down 39% YTD and 48% in a year, we do not like the momentum here. It has $15M cash, but cash burn was more than $29M in the past year. It has no revenue and ongoing losses. It is going to need more capital. There has been some management turnover as well. Its clinical program certainly has potential in diabetes treatment, but it is still early days and a long way from approval. For now, we would consider it too risky and a sell. Insiders own 7%.