Biotech Values

[DewDiligence]

Re: GTCB:

>> I am having a bit of trouble figuring out what exactly you like about GTCB. They seem like a tools-and-shovels kind of outfit. <<

GTCB is both a platform company and a drug-development company. The platform business is probably a larger component of underlying value, but the drug business will be in the spotlight during the rest of this year as the ATryn BLA works its way through the regulatory process in Europe.

>> On an (admittedly cursory) look at their website, they don't even discuss their pipeline, so I assume that there is none. <<

ATryn, the lead drug, is in regulatory review in Europe. Next in line in the internal pipeline are HSA (human serum albumin), a malaria drug, and a cancer drug undergoing preclinical research at Mayo Clinic. I attribute little or no value to the malaria and cancer programs at this time.

The external pipeline, where GTCB manufactures proteins under contract, includes eight active programs in various stages of development with such partners as Merrimack Pharma and JNJ.

By the way, I pay little attention to GTCB’s website. You will learn a lot more about the company by reading the 10K report and listening to the webcasts. (The webcast for the annual meeting was last week.) The Yahoo message board is also quite informative.

GTCB is not a simple story, and that may be one of the reasons the valuation is so cheap. Regards, Dew