Originally Posted by
MAC
Yeah, that's what folk say isn’t it 'no risk no reward', and I would agree that some companies do carry binary risk at the time of their inception, at some point though along the road to commercialisation that binary nature falls away and it becomes more a matter of degrees of efficacy and sensitivity analysis around that though wouldn't you say ?
If one invested in Pacific Edge three years ago at a defined point on the risk reward curve, a higher point than at present, then yes the risk was greater, and well yes so was the reward.
Over those three years the following significant de-risking events have been satisfied, and some minor ones in addition too;
> Clinical trials
> Laboratory approvals
> US CLIA regulatory approvals
> Clinical setting user programmes
> Full capitalisation
And, the share price over those three years elevated in response from 20c too, well quite an undervalued 84c at the present today (+320%).
Looking forward, the next few major de-risking events in the sequence IMO would seem to be;
> Final CMS acceptance (some clinicians may treat this as a badge of confidence)
> KP user programme roll over (the first one is important as a demonstration model for others)
> Profitability (FY16 according to the analysts)
However, as a matter of note, there is now also the matter of diversification through the development of further products, further de-risking in itself, Cxcolorectal being market ready, the melanoma product still in trials but a companion partner could come along at any time going forward too.