Arch Therapeutics Inc (fka ARTHQ)

[Polyphemus]

Since you are familiar with the space, you know that device companies such as ARTH have very different valuation metrics and exit points than do either pharma or biotech companies. As MP of Aisling Cap put it recently at industry meeting, biotech & pharma are valued at - and exit at - early time points in the development cycle, while device companies (esp with cleared products) are valued on revenues, typically on the basis of more than 2-3 reporting periods. Not fair, but this is current practice. Do you think it appropriate to imply that an exit for ARTH should occur 6 months after FDA premarket clearance? ARTH has a Class II wound dressing in a crowded market; device has no commercial history and not even a report of clinical usage PLUS a technology that might be developed for one or more other products. Earlier reports of clinical usage of AC5 technology used saline as the control.

Key issue - should investors wait on a clock or calendar, of look for an event or results to justify valuation and exit?