Stock price when the opinion was issued
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.
Had owned this in varying degrees, because it tends to be fairly volatile. Was originally attracted by their filtering technology, and have so much more efficiency and can drive so many more things out of that same litre of plasma than other technologies can. As an offshoot, they can drive many different layers out of that, they then would be able to develop some of these small molecules that they have had a lot of success with in very early clinical trials. Has a tremendous amount of runway. They are going to go through a process of having to raise more money to go through trials. Recently raised $60 million, and the stock has kind of languished while the market digests that. Expects it will end up being one of the marquee stories of biotech drug development in Canada over the next 5-10 years. In the meantime, it will be very volatile. Hold a core position and trade around it.