My thoughts on the PLX annual report and 3/12/20 conference call:
I was elated when the first news release was a financing, though costly and dilutive, I am very happy it is done. Especially more so with the financial situation today because of the covid 19.
I thought Dror was especially upbeat and he noted the high energy of the entire company.
As to the financing they will net $41 million now and another approximately $40 million over time when the investors exercise their warrants. Per the financing documents, they must register with the SEC within 60 days from today, 3/18. So, for the first quarter 2020 report we will have 32.4 million shares outstanding (14.8 + 17.6 from the financing). If things go well we can expect the investors to exercise their 17.6 warrants over time resulting in 50.0 million shares outstanding, perhaps by mid year 2021. The negative effects of the dilution will be apparent in future per share EPS calculations. Fortunately future earnings will be tax free due to approximately $180 million of NOLs.
The source of revenues continues to grow and grow: Pfizer, Brazil, Chiesi product royalties and milestone payments, recognition of deferred contract liabilities from Cheisi and now Kirin. I would not be surprised if we get another Kirin like deal this year; and I expect to see them move forward to get OPRX-106 into phase 2b clinicals in the near future.
I noted sifting through the SEC filings that employment at year end was 196 vs 184 last year, vertically all in R & D.
One of the most interesting things to me was the way Dror shot down the Wainwright analyst's question about 106 and 110. We have since seen the release on Kirin. I am intrigued about what might be happening with 110. In their February corporate update presentation they changed the presentation language for 110 to "DNase for multiple indicaions". Is this now a priority R & D effort? What might these multiple indications be? Lung alignments from other causes?
Under these awful investment conditions, PLX is holding together pretty well. Am I bullish on PLX? Very
