Stock price when the opinion was issued
A play on ebola could have a nice kick up now, but looking at the financials, they have lost money in 8 out of the last 10 years. This does not bode well. Also, they are not at all close to getting the product into the market. The testing for their product was actually for another product, so they are going to have to have a certain amount of latitude in getting it out. He would prefer Alpha Pro Tech (APT-A).
He has to be careful, because one drug could be a home run, but he has stayed away because it is so hard to predict how drugs will do through the whole approval process. You get a product that looks very promising through the first few stages of testing and trials. Right at the end, when they do the large scale trials, something turns up that hasn’t been seen in the smaller trials. To bring a new drug through the approval process is upwards of $1 billion. Because of this, they usually end up partnering with a big Pharma, and the value goes to the big Pharma.
Working on an experimental Ebola treatment. The biotech sector is probably the most volatile sector that you can get involved with. He would never buy just one biotech stock; he would buy a basket of 3, maybe 5. He wouldn’t touch this one. Too volatile and too risky.