...in the past few days at .33
Remarkably during the summer doldrums, today it is trading at a10-15% to the price it was trading at just
before the Sequel deal on Kinlytic deal was announced ("
a USD $ 350 million a year market that is a monopoly")
Not holding my breath on Q3 results after a weak Q1 and Q2, but I expect to see meaningful new orders in Q4 and beyond.
As they say, acquire when there is blood in the street. De-risked with a partnership that will monetize a major new asset, with little to no capital required (in fact just the opposite - it infuses new cash !) About $ 6.5M CAD over a period of time while the FDA is re-engaged.
Add-in the fact that the revenue and EBITDA slump (the second reason for the unusual slump in SP) on traditional products, will soon be coming to an end based on telegraphed deals in the works.
MBX is a rare bird in the biotech space that does not need to raise capital, has a clear path to profitabilty on existing products, the capacity to fulfill much larger orders, and a partnership with the possibility of a major score in the US (ie an excellent side-bet).
If Q3 scares investors in any way, I will see it as another perfect opportunity to acquire even more.
Reminder re: Kinlytic deal: Microbix will receive a closing payment of US$ 2.0 million under the Agreement. Sequel and Microbix will now prepare for an updated consultation with the U.S. Food and Drug Administration (“FDA”) to confirm that prior regulatory guidance received by Microbix remains pertinent. Should FDA guidance be satisfactory, the parties will undertake the work needed to file a supplementary Biologics Licensing Application (“sBLA”) filing, with funding for such work to be fully provided by Sequel.
Upon a satisfactory FDA consultation, Sequel will make a further US$ 2.0 million payment to Microbix, followed by a US$ 1.0 million milestone on U.S. re-approval via sBLA, sales-driven milestone payments of up to US$ 30 million, and ongoing royalties targeted to be a double-digit percentage of net sales. Should the FDA consultation be unexpectedly negative, Sequel may terminate the Agreement and recoup US$ 1.0 million of the closing payment.
Mike Anderson, CEO of Sequel commented, “We’ve completed extensive technical and market diligence on Kinlytic and are excited to partner with Microbix in bringing it back to market. It is important that safe, effective, and economic drugs such as Kinlytic are available to address the needs of millions of patients.”
Cameron Groome, CEO and President of Microbix also commented, “For many years Microbix has sought to apply its expertise to restore availability of this clinically-important cell-culture derived biologic drug. Lack of capital has always been a principal constraint, which this agreement fully addresses. Additionally, Sequel and its backers provide tremendous expertise in helping to navigate the processes for U.S. drug approval, marketing, and reimbursement, which are not core skills of Microbix. We are delighted to be working with Mike and the Sequel team to bring Kinlytic back into widespread clinical use.”
https://stockhouse.com/news/press-releases/2023/05/16/microbix-secures-funded-drug-commercialization-agreement