Hi Robin, BIO's announcement this week of hiring a "senior scientific adviser" (why would someone who needs a porter to carry around his qualifications get involved with a small Vancouver company?) is good news, especially since " Biotech Holdings Ltd. has entered a period of detailed negotiations with major pharmaceutical firms regarding licensing of Company's Type II Diabetes drug, Diab II, for distribution in North America and Western Europe."
BIO is passed the clinical trial stage, has entered the marketing and distribution phase, but the market gives an indifferent shrug.
Events to follow :
- OTC listing
- NASDAQ small-cap listing
- Agreement with major pharmaceutical company for Europe and North American distribution.
- National campaign for sales in China.
(initial sales are "extremely" encouraging)
- Completion of expanded trials in Carribbean
The lack of coverage of this company has been frustrating in terms of share price appreciation, but I may look back on this time as one where I was able to accumulate as much stock as I could at around $2.00 while the fundamentals of the story unfolded as the company claimed it would ( albeit slower than originally claimed).
Bayer has made $200m in China this year with its' diabetes drug, Prandose (Acerbose in N. America). BIO claims this drug causes stomach upset and flatulence. Diab II does not. Bayer's drug is about eight times more expensive than BIO's.
$200m earnings for BIO equals $100 share price, using a P/E ratio of 15 with fully diluted 31m shares. Delicious greedy speculation.
Am I off my head here? Is BIO misrepresenting what they have? Or deluding themselves? If so, the principals will lose a fortune.
Getting a listing on a US exchange will help the company to remove the taint of the western Canadian junior markets.
BIO has little liquidity and this affects their credibility as a real story, and it deters investors from taking positions.
One announcement of a deal with a multi-national drug company will inspire confidence among investors, and that is the next logical stage of this story.
To anybody who takes the trouble to read this, have a Merry Xmas and a PROSPEROUS New Year. Robin.
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