Replies to post #204791 on Biotech Values

[mcbio]

SMMT:

Just to add to my skepticism on SMMT. It should be noted they are now on (at least) their third formulation of their Utrophin modulator. I think with their current market cap the street is sorta saying show me you have it figured out. I know that is one of the main things that keeps me from even a small position.

Sure, I think those are all fair points. FWIW, the CEO specifically said during a prior call (believe it was last annual meeting), that they worked with a contract manufacturer and had solved the PK issues that have been a problem for them and that led BMRN to walk away from their prior deal with them six years ago. Who knows if just CEO-speak or if it will be proven in the clinic but that was definitively stated before.

SMMT is a small enough holding for me that if it goes to zero, I will be fine. I never make these boom-or-bust type of plays a large portion of my biofolio and try to handle the risk as best I can. I wanted to add to my position before the recent rebound but no way I will consider adding now until they clear up their financial situation (run out of cash in Jan. 2017 based on most recent guidance). It just seems odd to me that they have waited so long and so close to being out of cash before trying to raise any money. They must be expecting some type of non-dilutive funding coming soon but we will see. Interested to see if my hunch on what they will present at the upcoming World Muscle Society event starting on 10/4 pans out: #msg-125486491.