Cytodyn Inc (CYDY)

[Blueheel1]

i've been thinking about it. the challenge is, once we get approval for COVID, and likely long haulers, the challenge is that we don't have nearly the supply to meet current demand. great problem to have of course. but it's hard to say what our maximum revenue is, at least the first 9-12 months - i think it will be based on our ability to ramp supply.

but the reason our multiple will be much higher than GILD, is that GILD is a mature biotech with a relatively low growth rate - so they command a much lower multiple. it's the same reason Coca Cola commands a much lower revenue multiple than say Monster energy did, on it's way up. when a company is emerging and growth is explosive, the assigned multiple is much higher, giving credit to the revenue trajectory that is much steeper.

maybe 10 is aggressive, but even if you use 7X for example as our revenue multiple, and we have revenue of $10B - that's a $70 Billion valuation. Right now we have a $1.5 Billion valuation, so that's in the rough neighborhood of 50X current value. there's your triple digit stock price.

for those who think that's impossible, i would point to the myriad biotech and pharma companies with values of $50, $100, $200 Billion (Abbvie for example) and bigger. All started small, got big against the odds, and the best had a drug that was a game changer. I think we have just such a game changer in Leronlimab.