Telesta Therapeutics Inc. (BNC)

[BioSpecialist]

Billion Dollar Cancer Drug close to FDA approval if approved then this Stock could be a 10 Bagger .GL


ADCOM on November 18

FDA Decision in 1Q 2016


Telesta Therapeutics (BNHLF) (TST.TO)

Marketcap$115 Million
Cash $45 Million

Price: 0.40



Telesta Therapeutics: Near-Term Catalyst Could Provide Multi-Bagger Returns
http://seekingalpha.com/instablog/592211-john-h-ford/4491146-telesta-therapeutics-near-term-catalyst-could-provide-multi-bagger-returns


Valuation summary (all share prices in US dollars)

· Fair valuation today: $300 million. Shareprice: $1.04.

· Fair valuation following positive advisory committee recommendation: $600 million. Shareprice: $2.08.

· Fair valuation following 2nd Phase 3 trial recommendation: $150 million. Shareprice: $.52.

· For valuation following 2nd phase 3 trial recommendation with concurrent FDA approved drug sales: valuation $400 million. Shareprice: $1.38.

· Fair valuation following FDA approval: $1 billion. Shareprice: $3.47.

· Fair valuation long-term following FDA approval: $3 billion to $4.5 billion. Shareprice: $10.41 to $15.62.

Telesta is currently trading in the $.30 range in the US, so any of the above scenarios would provide significant returns. The only caveat, is that if a 2nd phase 3 trial is recommended, the company could trade well under fair valuation for a period of time.



Telesta provides 3 opportunities that could generate short-term multi-bagger returns:

· Telesta is so undervalued that with any level of Wall Street awareness, the share price could be driven higher. As we get closer to November 18, the shareprice could rise in anticipation of a positive recommendation.

· When the company reports the results of the FDA's advisory committee, if the results are positive, the share price should rise again.

· In February we will learn whether or not the FDA has approved Telesta's lead drug. With FDA approval, Telesta should be worth at least $1 billion and I would expect buyout offers in that range.

FDA precedent has already been established with Valstar's approval, and I believe MCNA with its superior clinical results will be approved in February. In effect, this is an opportunity to buy a soon to be $1 billion company, for $90 million, a true Buffett trade.