PLI has indicated that 2013 revenues are not going to be much different than 2012. Consequently we can expect another loss for 2013. I expect the Big Boys to exploit the situation and try and move the sp down once again to drive out the weak hands.. Of course it will bounce right back up exactly like we are in the process of experiencing from this week's activity.
What helps me during these periods of dramatic movements are the expected milestones and catalysts for the sp in coming weeks and months. Below is the conclusion of the most recent Beacon report. Keep focussed on the milestones highlighted below. Also understand that there should be more partnerships announced especially in the plasma protein area. Be aware that if the sp begins to approach the $3.50 TP by Beacon you can rest assured that PLI will seek out a NASDAQ listing (technically it can at a price of US$2). I am hoping this comes before the release of Phase 1b/2 results for 4050 - H2 2015? This should help you sleep at night :-).
From Beacon As the above analysis shows, ProMetic has three distinct value creation centres. Given the clinical data that has already been released, as well as numerous upcoming milestones in each of these segments, we believe investors should re-assess, or in fact assess for the first time, the value of each segment. Upcoming milestones to exhibit such value could include:
a) IND application for plasminogen, alpha-1 and other protein-based drugs;
b) Start of clinical trials for plasminogen and alpha-1;
c) Successful completion of phase 1 and start of phase 2 for PBI-4050;
d) Commercialization of partner drugs within its filtration business;
e) Partnership agreements;
Our upwardly revised target price of $3.50 is based on the aggregate value of its three divisions as outlined in our analysis above. As one can see, the majority (57%) of the value is based on its protein-based drug pipeline with its filtration business (24%) and PBI-4050 (20%) making up the remainder. However, the latter segment (PBI-4050) may offer the most upside beyond our new target price with positive clinical trial results that could narrow the valuation gap to its peer group.
Given all of these factors, we continue to believe that ProMetic exhibits exceptional risk-return characteristics, especially in comparison with its health care peer group. We maintain our Buy recommendation