Analysis - PYC - Phylogica

Analysis - PYC - Phylogica

Price($) 0.31
NTA ($) 0.04
P/NTA 8.09
Team 3.6
BurnPeriod 3.52
ProductPipe 1.9
ForeignMarket 0
Cash:Debt Debt Free

A very promising technology underpins the uniqueness of this company. The company is involved in research and discovery of proteins that block the onset of other proteins thereby preventing disease. It is touted as a more advanced technology than antibodies. The company claims to have libraries of such phylomers which it seeks to out-licence to generate revenue.

The business model is to out-licence promising compounds after efficacy tests from animal study. As such, the typical Phase I to III cycles which are common among biotechs will not apply to PYC. The technology is unique but the success of the business model remains to be proven.

The team score is high, reflecting a good number of scientists in the company. The company is debt free. However, it appears to have enough cash for less than 3 quarters. In addition, the Price to NTA ratio of over 8 points is very high. Though a promising company, the high price does not seem to be warranted.

Recommendation: Consider buying at 7-9c (currently trading at 30c).