RE:RE:coincidence?Gibbonsj, perhaps I should know better than to rise to the bait but given your deep knowledge of PLI, a biotech co in development mode, did you honestly think PLI would report $ 30 million in revenues this quarter?
FYI, PLI is investing in its drug pipeline. It has not established a commercial program yet for its drug pipeline. Hence its investment in drug investigation activities are expensed for accounting purposes. It has cash burn of +/-$20 million a quarter before one accounts for resin sales to its Big Pharma clients. This should not surprise you or anyone for that matter. Resin sales at the moment are a bonus, in my view. That is not where the big money is.
So although some make a big deal about the quarterly numbers, in the long run the quarterlies matter little. One should bake into their investment thesis a capital raise of $50-$75 million per year ( it could be more) for the next 2 years anyway while we wait for the news that PLI has reached commercialization stage of some of its drug pipeline.
I suppose it could happen that PLI monetizes some of its assets on a geograhical basis( PLI has a Board Committee to oversee the thinking/math on that decision by Mgmt) which would provide some cash to fund development activities. PL has been planting that message vs a public financing to keep the sharks honest but ultimately chooses the latter to keep building value for shareholders. I assumes the latter is a no brainer from a cost of capital point of view but at some point you have to wonder when our pipeline will get a fair value.
I attended the AGM. Enjoyed the opportunity to meet Bepando, Jackal5, Dibah and Brian. Alot of info to digest from the slide deck. Perhaps too much, for me anyway. Listened again today to the finale of the meeting. PL seems in control and has a vision.
As I reflect on where we are, there is no question institutional investors are not there in terms of believing in the quality of the pipeline, concluding in the likelyhood of commercialization on a profitable basis and assessing managements ability to get the job done. Its too risky for many at this stage of our evolution. Too many moving parts. The management issue may well be the largest hurdle to overcome for the smart money. If management has not done it before, its too easy for institutional money to stay away. In their mind, its not worth the risk. So the jury is out for custodians of other peoples money.
So I think we languish until the risks associated with one of more of these factors become more easier to assess.
Will 2016 be the year when PLI gets the respect it has been working so hard to earn?
GLTA
Coyote13