What matters in Biotech and Pharma?
First of all I am not here to try and out write someone else or to prove I know more than others. As RMaker and others have shown there are many great reasons to own VPH and there are many well written pieces of published materials that state those reasons.
But maybe these have not been packaged together in a manner that shows why this is such a great opportunity to make money on this company. After all the stock market is about making money for individual investors?
What matter is Biotech and Pharma is this imo at the small cap level:
* avoid massive dilution due to high capex costs often associated with said industries.
* avoid potential litigation moments on early research or trial "mistakes"
* avoid the dreaded early stage failure result.
* operate in an area that is a "known" market winning space or jurisdiction.
* have a well articulated corporate plan that is unique or different from the other excessive amounts of small players demanding attention from the investment world.
* have a proven track record of accomplishment or a resume of success so that the investment community can have a sense of confidence, if not out right belief, in your new corporate plan that is hopefully unique.
Think about the aforementioned? It really comes down to this. Can you avoid the many pitfalls of scientific and industry space failure that litter the two sectors that we have identified. Can you create a sense of belief and motivation among a group of investors whom you need based upon a clearly defined and articulated corporate vision and with the aid or the back drop of a proven record of success. And, yes finally, can you do so by operating within a jurisdiction that is recognized as the "place to be" with regard to your selected industry space.
So how does VPH stack up then to these markers for success?
VPH chooses their partners and they choose partners who have demonstrated a high degree of success in their given operational jurisdiction and it is NOT Canada. So the potential partner company and its "product" have already largely been fully de-risked from a "clinical, possible litigation, and a scientific" perspective." So the element of "failure" which haunts the industries has largely been eliminated. Yes some would point out that the "big upside" for any single or given partnership has also been cast aside but that is NOT the vision here! It is not the "home run" single product or partnership corporate hope! It IS an "assembly of proven parts" that create a high net worth machine or corporate entity over a longer period of time! Give away some of the upside for the assurances of success!
VPH has a proven track record of success and is in the process of ensuring adequate liquidity to fully develop and explore their unique corporate strategy. Management has the track record of success and the financial involvement to want to ensure with an almost complete amount of assurance that the go forward steps for VPH occur in a manner and a time frame that allow for success for their significant time and monetary investment in the corporation.
Lastly, and not to be understated its Canada and its Quebec. Canada, as a model country for a nation and publicly funded health care system, and Quebec as the rock bed of the Canadian biotech and pharma industries in actuality and reputation allow VPH to point to the significant realities and experiences in the markets that they operate from within. Can you imagine if you tried to sell an investor base on an oil story from Quebec? How would that pan out? Contrast that if you stated the Western Canadian Sedimentary Basin and Alberta? The point is not oil but rather where does the industry "believability" lay within and where does the industry proven track record reside?! As stated its Quebec and Canada for a variety of reasons.
VPH affords investors with a very understandable business or corporate structure and way forward plan with all of the elements needed for success and, but certainly NOT least important, with a largely mitigated possibility for failure!
Thus for me it is a must buy!