Q: Came across this small cap Pharmaceutical CO. from Victoria BC and would like your evaluation of them and your thoughts on a small position?
Thanx
Gary
Thanx
Gary
5i Research Answer:
The stock has done well, with market cap at $263M after a 104% gain in the past year. But note the company has no reported revenue, losses and highly negative cash flow. Insiders own 13%. Its clinical pipeline has potential, certainly, but most are Phase II or earlier, so there is still lots of risk here and more capital is going to be needed for development over the next five years. We like the stock momentum, but we would be OK waiting here for fundamentals to catch up to the price. It will need more cash within 18 months, most likely.