Telk - Anyone here own Telk. Seems to be a good value at these levels?
I own it and have been averaging into it. It is getting a generous valuation, in my opinion. However, the data to date is strong. Investors who average into Telik over the next 12-18 months should be well rewarded.
Wick is a funny / strange guy. However he's smart as hell. The one near term disadvantage for investors is that he has not out-licensed Telcyta. The share price will therefore get hit hard for any delays (and the consequent financing that will be required). The potential benefit for those bearing the risk is complete preservation of North American profits, with the possiblity of a Velcade-like marketing deal. Such a deal would likely assure a competitive royalty for European sales while lessening the $$$ required for post-marketing development activities. For Telik, sharing the costs of furthering Telcyta's clinical development will be a significant gain for shareholders, in my opinion. If Telcyta does get on the market as a monotherapy subsequent to Hycamtin / Doxil, they will still have strong rationale to pursue earlier combination strategies for ovarian and nscl cancers.
