[AXPH]
Yes, John, that's the question... what will they do? I really
wish I knew the answer. They do have a lot of good technology and
as you point out, they are financially sound. Again, a pretty good
bet at these levels but I'm still a little uncomfortable.
You bring up another company I follow, Aurora Biosciences (ABSC).
While this is not the thread to discuss these issues in detail, I
would be real hesitant to invest my money here. Their robotic
systems for Ultra High-Throughput Screening (UHTS) are definitely
a work in progress and they have put together a high-powered
consortium (of mainly big pharmas) to help fund the development.
There are many technical issues to overcome, particularly with
the microfluidics module, and I would be really surprised if
they were able to stick to their aggressive development schedule.
Any substantial delay may result in the need for additional
capital which may not go over too well in the markets.
Their fluorescent-based assays for screening are really top-
notch. I would expect any near-term value to be derived from
collaborations involving screening. I agree that this stock has
been beaten but I think it is now trading at a reasonable level
for it's progress. If the UHTS systems develop on time and are
successful (there will be several competitors on the market by
then) they will certainly make money here. Add on their revenues
from screening deals and they may be profitable... the big money
is further down the road so I'm guessing there is still time to
wait and see how these programs develop. I don't think ABSC offers
good risk/reward right now... maybe in another year after they
deliver the next module for their system.
Regarding ENMD, that stock had _no business_ being at $70-80/share
and it's return to earth is no surprise. Now, I think you are right to
say... "ok, they had some good results, should I buy". I don't
follow ENMD, perhaps I should, so I can't say for sure.
Have you folks had enough biotech yet??? ;^)
John |
