Opinions
Bruce Campbell (2)
Prometic Life Sciences Inc.
PLI-T
COMMENT
May 20, 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.
This has 2 different businesses. 1.) Manufacturing, their plasma base. 2.) Orphan drugs. Sees both sides of the business growing. Looks at the manufacturing as a “steady Eddie”, and it is really going to grow over the next few years. Have a number of companies they are currently selling plasma to, who are in different levels of clinical trials with the FDA. If some of these got approved, the amount of plasma needed will really ramp up. Also, 2 or 3 of their drugs could be fairly significant blockbusters that they may hold for cash flow or selloff. Has his eye on this.