Biotech Values

[mcbio]

One thing I like about BiolineRx is they have an anti 'Zebra's law' policy and they tend to kill projects at the first slip and early in development not wasting resources.

I like that as well. Given this policy, I would infer that they think highly of BL-1020's prospects given that they've pushed the drug into a Phase 2/3 trial in Romania and India.

Bioline has a very nice corporate presentation on their Web site (http://www.biolinerx.com/uploaded/BioLineRx%20Company%20presentation%20(English)%20(24-Jul-11)%20FINAL.pdf ). That presentation shows that they expect to complete the Phase 2/3 BL-1020 study in Q4'12 at an estimated cost of an additional $12-15M and they are hoping for an advanced stage partnership at that time, which will presumably only occur if they show the novel cognitive benefit at 6 months. I guess one could question the validity of the results of a trial run solely in Romania and India but maybe if the cognitive benefit is clear at 6 months, it will still merit a nice partnership with a big pharma.

Per slide 4 of the corporate presentation, Bioline was founded in part by Teva in 2003. I hadn't realized that. I assume Teva has some type of stake in Bioline now.

The other less famous but interesting and promising thing in their pipeline for now is IK-5001 (a.k.a BL-1040)

Thanks for the added color on the pipeline. Lots of shots on goal here beyond BL-1040 as well. Bioline had $36M in cash and short-term deposits as of 3/31/11. Combined with debt of about $6.5M and market cap of only ~$70M, that yields an enterprise valuation of only ~$40M. That strikes me as an interesting risk-reward. Do you think the tiny valuation is more just a function of Bioline being a bit under the radar or are there other factors at play? If it's the former, perhaps the ADR listing will help.