VistaGen Therapeutics Inc (VTGN): Saw a seeking alpha article from 4 hours...

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zalicuslicious

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Tuesday, 10/09/2018 2:32:24 PM

Tuesday, October 09, 2018 2:32:24 PM

Saw a seeking alpha article from 4 hours ago.....7 pages-this is just the last of it. Author seems to like VTGN but says this....

AV-101 is still at Phase 2 of development. Thus, it should trade close to the ratio of Cerecor, 7.9x book value per share. Using 7-9x book value, the share price of VistaGen should trade at $0.98-1.26, which seems a more reasonable mark.
Conclusion

With a large target market size and candidates at Phase 2 of development, VistaGen seems an interesting name. With that, the company seems currently overvalued as compared to other peers. Investors should not be able to justify 12x its book value per share since the company's research and development is not quite advanced. Peers at Phase 3 of development are trading at more than 10x book value per share. In addition, Cerecor with product candidates at Phase 2 of development trades at 7.9x book value per share. With this in mind, buying at these price levels does not seem very reasonable.