RE:RE:RE:Alogos news They need to provide a plan this month as it is the top goal in their corporate presentation. It may not need to be "massive" and I'm not sure anyone has said there's a slash and burn because there is a growing sales effort and most employees revolve around that effort, But the statement requires a roughly $30mil adjusted change in either revenues or costs above the EBITDA line. Revenues will provide an estimated $10mil, so rest has to be spending less.
The cost base is big enough a plan could fairly easily lower them by that amount, especially as 2022 had a lot of one-off costs in it. R&D would be consultants, some lab work, some regulatory oversight and paying for trials, they've said that is all "gated", so some will come from there or, if not, it means the decision tree has moved to the "worth investing on" side which should be viewed positively (if the data supports it). I say positive because they have composed the advisory decision makers with outside experts to parse the data. The rest would have to be any fixed costs or salaries. Paul's said they will be very careful with the entire RD line, so that we know but not exactly where that number would be for 2023.
One good thing is that every analyst will ask the questions we are asking each other -what they should build in for RD, GA, sales costs, revs. They will all build in whatever the new plan is and we will see what it does around targets and recommendations. My guess would be the analysts refine their models and like the new financial targets, will lower some of the crazy high targets, leave to $3ish level targets reaffirmed, speak about the pipeline as now lower cost and controlled, and hopefully highlight that a 15% revenue grower with profitablility being emphasized should trade a lot higher. That's what deep value guys like to see. I hope they ask what CMO will be talking about in those conferences and if they will post that info.
One alternative would be cost sharing in a deal but they have also not said anything yet about that. So one has to assume GA and some sales costs need to be cut. Until we hear from Paul on his plan, that is the highest probability way to get to a fast break even. So maybe not "massive" as you claim, but costs must go down versus 2022. We should know more soon I hope.