TSXV:BTI.H - Post by User
Comment by
prophetoffactzon Dec 21, 2022 8:55pm
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Post# 35186118
RE:RE:Biodexa's CEO
RE:RE:Biodexa's CEO"Watson and Crick moment! Has DrDR EVER had a W&C moment?"
In a way the Biodexa deal is Rathjen's Watson and Crick moment. Midatech's CEO defies anyone to find a company of its size with the same opportunity set. That is a truly exceptional statement. The deal is big and bold, defining a potential multi-platform therapeuitics company with already assets in or near trials with $12 billion in market potential. Two of the company's platforms could be validated by the world's largest healthcare company next year through licensing deals helping validate a very expansive pipeline. Revene from the lead assets can create revenue in the relatively near term.
With the halt I thought we could see a 'Saltarelli' - a deal consistent with his successful track record. This deal is a 'Saltarelli' on steroids. It is Rathjen's Watson and Crick moment, in a sense. "Why has xB3 beeb hidden?" It is potentially 2 years from a clinical trial and then longer to reach its first proof of concept in humans. It is a concept. It is many, many years from potential revenue and then it has to make enough revenue to payback. 25% of the biotech market has been trading below cash in recent months. There is not much interest in concepts that may take 10 years to playout and payback with huge risks and huge cashburn on the way. In a zero interest rate environment where there is no time value of money biotech and concept stocks are the rage. At a time of 40 year high inflation where central bakers are slamming on the brakes it is a dramatically different world. The market wants revenue now. We have been in the worst biotech market in history. That's the ugly fact. Cash is king and many biotech/concept stocks are finding that out the hard way as they are massivly diluted making those with the cash king.
To meet the needs of the current financial environment Biodexa is a rare disease therapeutics company. The trials are short, relatively inexpensive, and there can be a fast track to market. These trials lead to cash and payback in relatively short order. Biodexa has lead assets in or near trials and can create a relatively near revenue ramp to support the xB3, and Q-Sphera concepts and pipeline growth over time.
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RE:RE:RE:RE: MTX110
An early-stage licensing model may be particularly unsustainable in a high inflation environment. No one really cares about revenue 7-10 years out given the inflation rate and the clinical risk and cash burn to get there. You don't make much licensing early to pharma. The burn rate quickly eats it up. 25% of biotech has has traded below the value of cash in recent months. No one cares.
BTI and Midatech are trying to escape that model and adapt to reality. They are convinced about the value of their assets and want to run with it. They believe they have game on their own! With the lead clinical assets a revenue ramp that sustains the company and a broad pipeline can be built. Hard data milestones are near. Early-stage licensing can complement on the way. Combing the two companies creates scale. Fast-track assets help bring revenue early. Small trials limit the upfront cash costs when cashburn is costly. BTI has waited a decade for others to move on their timeline and in secret. Enough already. This is the breaking point. Just do it!
Nearly a quarter of all public biotech companies are trading below cash 
