Biotech Values

[DewDiligence]

Re: Sirna’s dermatology acquisition:

>> What's next, a hostile takeover by Gillette? <<

Sirna said on their CC Wednesday that the current hair-removal market is $11B(!), but they must be using a liberal definition of market.

My take from the CC is that the principals are not quite sure yet what they have with this RNAi-based cream to shut down hair growth by downregulating the so-called “hairless” gene in the hair follicles. At first they said the treatment was designed to be permanent, i.e. the follicles would be unable to regenerate. Later in the CC, they said patients would probably require retreatment every 6-12 months, which is good for the doctor’s revenue. The treatment may work, but they need to get their story straight!

Here’s are some things they did not say: 1. How many treatments have been given to the test animals; 2. The duration of the effect in the these animals; 3. When and where the preclinical data will be published; 4. What kind of IP protection the company has for this treatment method; and 5. How many shares of stock are being issued to the acquired company.

Sirna was up 26% Wednesday so evidently some people were impressed.