Biotech Values

[mcbio]

Re: PYMX/PMX-60056

UFH reversal is potentially a big market, so the question here is: To what extent does the superior safety of PMX-60056 warrant a premium price relative to protamine (which is dirt cheap)? Unless PYMX is able to make a convincing economic case that hospitals will save money in the long run by using PMX-60056 instead of protamine, I’m not sure hospitals will readily accept the purely medical justification. Moreover, the squeezing of hospitals’ operating margins under ObamaCare might impede the commercial uptake of PMX-60056.

In addition to safety, I assume there's also the question of whether or not PMX-60056 will turn out to be more effective than protamine. If more effective, presumably hospitals will be more receptive to paying for the more expensive product. Either way, at a ~$73M market cap, the market isn't factoring in much anticipated success at all for PMX-60056. So, any surprise in commmercial uptake of PMX-60056 on the upside (assuming the drug makes it to market of course) would seem to leave plenty of upside for the stock.