Opinions
Robert McWhirter
Prometic Life Sciences Inc.
PLI-T
COMMENT
Feb 20, 2018
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.
Prometic has two parts to its business. They can buy a bag of plasma for $200US and extract 11-13 high profile proteins. They have already applied to do 4 of those. There is an almost unlimited market for one of those, plasminogen, because there is no other supply of it. They’re also working on another drug that targets fibrosis. The studies for this drug are very costly, so PLI has had to raise a lot of capital. This will take a long time, is very risky, but will pay off well if successful. They are expected to break even next year based on their protein extraction.