Replies to post #105855 on Biotech Values

[nsomniyak]

I am long ITMN for the short term (no longer than next Friday, as I will probably exit by writing covered calls) with my investment thesis being that the non-dilutive cash infusion from the Roche deal will force short covering.

After that, for the medium and long term, yes, I definitely would see ITMN as a short candidate. They will fund the next leg of their research, but it is a bet the farm deal on European approval, which won't come until next year. Also - the chart is almost a comical head and shoulders - looks like a side view of a ten gallon hat :)

[DewDiligence]

Do you see ITMN as a good short candidate? …There seems to be nothing in the pipeline worth the market cap.

It wouldn’t be my kind of short because you could lose big if the EU’s CHMP approved pirfenidone with a favorable label. Moreover, the timing of CHMP actions are harder to gauge than FDA actions.