Biotech Values

[mcbio]

Isn't this what we just talked about?

I'll just add that I think it's pretty rare that you find a small-cap biotech with a $15M market cap that has two years of cash remaining, let alone a partnership with a major pharma going after a novel indication. Can things go terribly wrong from here? Of course. GNVC obviously doesn't have a great track record and their pipeline is very early. And obviously it's still a long drop to go from $15M market cap to $0. But, what is the upside potential starting at $15M market cap if NVS does file an IND on the hearing loss drug in 2013 or they do make progress in the RSV program and file the IND or land a partner in 2013?

All told, clearly a highly speculative play though I think there's some upside potential starting from that low base if they have any positive developments in 2013. Kind of in line with our prior discussion of waiting around to get additional data before jumping in (think this was more jq's point), perhaps it makes sense to wait until January next year to confirm that NVS indeed intends to continue forward with the hearing loss drug.