Has anyone done research on the plant genomics companies, such as Paradigm Genetics (PDGM)? I have invested in a similar company that has about 1/15th the market capitalization named Agritope (AGTO). PDGM is over 450M market cap, with a H&Q's biotech analyst Robert Olan recently publishing the remark:
"They determine the functions of specific genes on model organisms that are applicable in non-human applications," Olan said in an article posted on CNBC.com. "This is a new angle that sets Paradigm apart from other companies, and it’ll prove beneficial soon enough."
AGTO has a similar profile, with several important patents already issued, a research relationship through a 50% owned subsidiary with huge French pharmaceutical giant AVE, and a recently announced agricultural gene discovery product. Yet AGTO, even after its recent runup, has a market under 30M!!
Can someone explain to me why AGTO is so undervalued against its closest competitor, even acknowledging that AGTO began as a pure research company and not a VC-financed startup? I'm inclined to think that AGTO deserves a valuation of at least 100M (which is still only 1/4 of Paradigm's!), which is easily three times its current valuation. It is also quite clearly an acquisition target and bargain of the century for a bigger player who wants a footprint in the plant genomics area.
Any opinions are appreciated. |
