RE:RE:RE:RE:Taurx Phase 3 Trial UpdateThanks for the thoughtful response.
My point is that there is zero value related to TauRx priced into Dundee's current share price. So if the trial is unsuccessful I don't think Dundee's stock would flinch. On the other hand, having a 4% stake in the only approved alzheimer's drug would be very valuable. Sure $800M is optimistic considering the trial is ongoing but I think it would be multiples of the $40M carrying value.
Consider the following:
1) TauRx has recently raised money at US$200/share* compared the the US$30.60/share* used to arrive at Dundee's CA$40M carrying value. The recent financings aren't the same class of shares but they are convertible into same class that Dundee owns on a 1 for 1 basis. I'd suggest that based on these financings Dundee's current carrying value is low.
2) I understand that TauRx' drug is safe and has had positive impacts for patients with Alzheirmers and Dimentia. Similar to the last trial failure they could make some changes, refinance and try again. So even if the current phase 3 trial fails, I'd expect that there is still some value (who knows how much). Additionally, I would expect the data and research could be of value for other Tau related therapies.
*Sources: US$200/share from Q3/2020 MD&A; US$30.60/share from Q4/2019 MD&A