biOasis Technologies Ord Shs BIOAF

RE:Is There a Case Against xB3?

[prophetoffactz]

xB3 has been given three management teams in addition to Medimmune, Prothena, Vaccinex, and Chiesi to find a path forward. There was Biodexa and Cresence. Many other companies have looked at xB3. It hasn't found an easy path forward in the least as DNLI continues to progess clinically. That said, there is nothing definitive saying that xB3 doesn't work that I'm aware of. DNLI's technology has moved forward providing certain validation of the path forward. As has been said, we've been in the worst biotech bear market in history. Pre-revenue and pre-clinical biotech has not been an easy place. 25% of US biotech was trading below cash last year and BTI went into debt and has never been properly capitalized. xB3 is still potentially years from a clinical trial. The J&J multi-product option is still alive as far as we know and did result in a small milestone and expansion according to Rathjen in January. BTI's release today notes a number of strategic options are still being pursued but there is an immediate liquidity problem and the issue of the debt overhang. Saltarelli stayed with the company. There was some validation from Ladenberg Thalman and Armistice Capital. Crescence agreed to the deal and still appears interested; including in xB3. Lind and XOMA also agreed to deals involving xB3. Maybe if the debt is converted to stock thereby cleaning up the balance sheet and a little more time is provided to act on some of the options still available xB3 can find a path forward. It needs to be properly capitalized for once in its history. It's been living off hand-to-mouth financings, and debt even in the worst financial crisis in biotech history. It needs to get rid of the debt and have $10 million on the balance sheet at least and a clear path to the clinic for a lead product. Chiesi's lack of interest in Lysosomal Storage doesn't bode well for the current lead xB3 candidate. xB3 needs to be adequately capitalized for once and it needs a compelling lead product and path to the clinic.