I've held this stock for three years. I originally bought it because Insite had successfully taken three products through Phase III trials. Three.
While "slam dunk" is never a phrase that can easily be applied to a biotech, Insite looked close. Now, three years later, not one of those products has been approved by the FDA, let alone seen the inside of a drug store. In retrospect, that should have been a warning.
After the intial enthusiasm had worn off, just as I was about to pull the plug on what looked like a poor investment, Insite gained the rights to some genes associated with primary open angle glaucoma, then congenital glaucoma, and I decided to stick with it. Since then, we've had a test kit developed too_but no deal with a major pharma or lab to get the thing to market. We've had plenty of dilution, however, as the company raised cash to keep going.
As time had marched-on, I've had to keep asking myself whether hanging-on to ISV is a triumph of hope over experience. Maybe.
I'm tired of the deal that never seems to come, of bad info and/or missed deadlines, of dilution and, most of all, of the opportunity costs associated with holding this stock. My frustration is showing I suppose.
I've never questioned Insite's technology. FWIW, I still think that timed-release eye medication is a good idea. And the test kit ought to be worth a bundle.
It's unclear at this point whether Insite can really negotiate a great deal. I doubt it. They're running out of cash and are likely to have to take what's on the table or dilute again.
I hope I'm wrong, that they'll get a nice up-front payment and lucrative royalty arrangement. But I'm not holding my breath, not with their history. What leverage do they have to get someone to sweeten the deal? The technology? They've had that for, what, eighteen months? Now they're running out of money, which just complicates things.
I haven't sold yet. Nor do I plan to in the immediate future. But I won't finish the year with it in my portfolio either. Enough is enough.
Bob
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