Chip,
Your questions are very valid.
Without having a 10Q in my hands, I cannot address your statement regarding the company losing $1 for every three in revenue. I imagine
that there is a profit in the sale of the drug itself. As with every young biotech, R&D plus admin will wipe out any small profit. A case in point is Medimunne. They are stilll piling up a loss even though they have increasing sales each year.
As stated in my earlier post, companies such as Centocor and Medimunne have incurred failures and long delays. At the time of their disappointing announcements, there were nothing but major negative articles being written about them. The last I looked, they are sporting quite healthy stock prices today. Xoma has seen its sepsis shock drug downed more times by the FDA than I can count. They have spent quite a lot of money on the drug, but they are still around. They incidentally have one or two other drugs in testing that appear to be effective against their respective disease.
Regarding management and its incentives and salaries. It is up to us as investors to continuosly voice our disapproval if we feel that they are being paid for nothing. Otherwise, human nature being what is is, most anyone would approve themselves a lucrative salary. I agree with you here. Management owns approximately 1% of the company. Quite a far cry from Medimunne's management which owns approx., 48% - 53%. Is there a web site that monitors insider trading? Maybe they are buying some shares now..???
I do know that LIPO has enough cash to stay around for at least a year or two. Without calling the company, I have no idea what is in the preclinical pipeline. I doubt that they would tell me.
Thank you for your informative response. I take back my previous post regarding your earlier post.
The best of luck to you and others.
Jerry |
