The Effect of News on Share PriceThere are many types of news that Bioasis can generate and release. Here is a list of news types and my opinion of the order of their importance with respect to driving share price.
In the end, it's generally the significance of the accomplishment that determines the degree to which it might lift the share price.
Here's my order of accomplishment (news) significance:
- Bioasis clinical success.
- Partner clinical success.
- Licensee clinical success.
- Significant partnership deal with a Bioasis pipeline drug.
- Significant licensing deal with a Bioasis drug or program (like Chiesi deal)
- Selling of a Bioasis pipeline drug to a pharma. (This could be higher depending on pharma and price.)
- Bioasis announcement of clinical trial start.
- Partner announcement of clinical trial start.
- Licensee announcement of clinical trial start.
- Bioasis achieving IND status on a drug.
- Partner achieving IND status on a drug.
- Licensee achieving IND status on a drug.
- Developmental milestone payments to Bioasis.
- Regulatory milestone payments to Bioasis.
- Licensee release of preclinical study information.*
- Partner release of preclinical study information.*
- Bioasis release of preclinical study information. (like progranulin, IL-1Ra)*
- Free media coverage, voluntarily done by media but without announcement of accomplishment.
- Executive, medical and scientific hirings. (Could have greater impact if the person is newsworthy)
- Financial reports and MD&A.
- Financings,
- Paid media coverage with announcement of accomplishment. (Stock promotion)
- Paid media coverage without announcement of accomplishment. (Stock promotion)
* Items 15, 16 and 17: With respect to the release of preclinical study information, Licensee, partner and Bioasis are ordered in reverse compared to other news detailed higher in the list. This is because partners and licensees are likely to attract more attention to Bioasis with preclinical studies than Bioasis can with its own release.
I left out commercial milestone and royalty payments because they are likely many years away.
This is a sort of quick and dirty list. I'm interested in comments, including things I may have forgotten.
jd