Replies to post #88242 on Biotech Values

[mcbio]

Re: SBS/MDCO

So, working from the assumption that both companies have valid IP and effective drugs, I suggest the problem from an investment perspective, is whether either company can find the right path to develop a game changing approved drug . My bias at this point is that SBS is interesting as a potential acquisition, though it's a guess whether it would be as a take-over or take-out (to kill it) strategy.

I think that's a big assumption regarding "effective" drugs. I don't believe SBS has any data in humans regarding its ApoA1 and neither does MDCO for that matter (they'll have to start from scratch at the beginning of Phase 1 with their new formulation of ApoA1 once/if they resolve the manufacturing issues). So, pre-clinical data is great, but it doesn't really mean much until you show a drug's effectiveness in humans. This is why SBS is even more so a highly speculative play (poor financial shape and lack of PoC in humans). At least with MDCO you have an established company with what appears to be a fairly strong balance sheet. SBS seems like a desperation hail-mary play at this stage.