The chronology at Kosan is looking interesting.
First, a long, long period of clinical mediocrity with lead compound that wasn't even discovered in situ. No product of the enabling hotshit platform polyketide technology gets anywhere. In-licensing others' programs. Money is wasted spectacularly. Money-founder sells oodles of shares all the time and pisses off the licensor MSK beyond repair. Lead compound we find out has IP conflict with BP cpd that actually seems to work. Embryonic preclinical work is perking along at embryonic stages but appears to have a long gestation. Then....
7/18/05-- $35 LoC obtained (still not used)
8/15/05-- KOSN pulls an offering of 5m at $8/sh because of the substantial decline in the stock following the announcement the NCI amended the protocols for the NCI’s 17-AAG and DMAG clinical trials in response to five patients that showed EKG changes “without clinically significant consequences” after infusion of 17-AAG.
12/05-- CFO quits/fired
2/06-- Change of control parachutes adopted
2/06-- CEO/COB money/founder quits/fired
In here, Company hires some seemingly good, new people—-and promotes a number of scientists from within
3/06-- Restructuring, a -33% headcount reduction
4/06--52-week low financing at $4.75 (5m shares)
Great Point (new, at 6.5%), Orbimed, TRPrice, Wellington are major holders
5/06 Settles EPO-D IP issues with BMS, then royalty/milestone issues with MSK--terms show the company clearly smoking peace pipe. With no egos around its ok to admit mistakes.
5/08 Announces an oral presentation at ASCO and lotsa abstracts with different cpds.
HSP90 companies are being acquired or partnered up.
There might be something here now at this MC, as it looks like maybe they are no longer in the BS game. Personally I'm not sure; the previous kosn has always been just a little stinky. It is at least worth paying more attention to today than last year at this time. Anybody really hot on kosn? IPO was at $15 in 2000, so this stock is just about right on the biotech maturation/valuation trendline ($4.80 today).
Am NOT making a call here. Just calling attention and looking for opinions. |
