Synaptogenix Inc (SNPX)

[SF Wolf]

Paul Harte – Portfolio Manager at Mt. Lucas Management (discussing his Investment in Neurotrope):

(Mount Lucas provides innovative investments to institutional and high-net-worth investors.)

BJ: I know that Alzheimer’s Disease is an area in which you’re quite keen on. Why Alzheimer’s?

PH: Alzheimer’s is the one disease left in the world that doesn’t have a cure. It’s a huge opportunity, a huge population comes down with Alzheimer’s. Every person is affected in one way in another with a friend family member with Alzheimer’s.
Big pharma has plowed billions of dollars into this area with no real success.

BJ: What did you like about the Neurotrope deal?

PH: Well it was interesting, it was a tiny $60 million market cap company that has a novel approach that’s actually at the end of a Phase II trial with results being reported in April. So it’s not pre-trial, it’s not being done on mice, it’s on humans in Phase II that had previously in Phase I, proven the safety of their approach, which also prove to reverse AD in part of the patients that they administered this drug to.

BJ: What’s your guess if they get positive results on this latest trial?

PH: The issue with Neurotrope, Promise Neurosciences and most of the companies I own, is that there’s a lack of visibility or awareness of these companies. That’s part of the charm of investing early – you invest at a very low price and if they execute and get discovered – there’s an opportunity for multibagger type returns.
We’ve looked at other companies. There’s nothing similar but there’s some apple-to-oranges that if their Phase II results are excellent and they progress into Phase III, and into potentially partnering with big pharma, then it could potentially be a billion dollar company. So, that would be roughly 16 times the value today.

Again, its a “high risk high reward”-type situation. In microcap world, the risk is bankruptcy, and the reward is huge because big pharma has spent billions of dollars trying to reverse the effects of AD, so the idea of one of these microcaps turning into a billion dollars company is not far fetched.

For full interview: http://www.onemednews.com/2017/01/28/paul_harte/