Opinions
Robert McWhirter
Prometic Life Sciences Inc.
PLI-T
COMMENT
May 15, 2015
Stock price when the opinion was issued
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He believes this has been very volatile due to an overhang and the potential need for more financing. It is stabilizing now and they have received an investment from the Thompson family. He thinks they should begin to receive approval soon with sales later this year. They do not own it presently, although they have held it in the past.
He is short this company presently. The market cap is quite high compared to his estimate of value. The company appears to be quite promotional compared to others. Their plasma protein product is easy to get through the FDA and subject to hype at each easy approval stage. He does not see revenues and earnings to back it up.
They have patents on plasma protein drugs that are interesting. The company had significant success pushing these through the FDA stages but they recently ran into a delay and the stock dropped precipitously. He has been short for a while thinking the market cap was overvalued for the ultimate end market they were pursuing. Now that the stock has dropped so much, his short position is smaller. This is a highly speculative position.
There are 2 parts to the company. The one can take a bag of plasma and extract up to 14 proteins. This methodology is a lot cheaper and you can get a lot more of the protein, compared to the existing process. Just announced a 4th orphan drug. His expectation is that they will announce 3 more before the end of the year. Also, have a drug called PBI 4050 which attacks fibrosis, which he thinks will be quite significant. He really likes the 2 year outlook for this company.