An opinion on the commercial prospects of RHY, page-6

I welcome the robust discussion. Without it, the thread would devolve into a group of cheerleaders slapping each other on the back at their astute investment.

Soz, couldn't read the article via the link you sent (requires a sign up). In any regards, I don't think the Applied Proteomics case is relevant to RHY.

You cherrypicked some info, but didn't explain why they were a commercial failure. The implication is that it is just too difficult to be commercially successful in the diagnostics space (rather than any specific mistakes on behalf of AP's management in executing their strategy). A quick online search can unearth a lot more interesting info. So, let's have a dig.

Some of the $28m they received from Genting Berhad in 2013 was used to build a CLIA lab to conduct mass-spectrometry assays. From what I can glean, they had plenty in the pipeline, but weren't focussed solely on commercialising a blood test. There are also stacks of supposed employee feedback reports about the company. Boy, do they make for some sad reading. Huge employee dissatisfaction, churned through capital, laid off staff before Xmas, erroneous & questionable results with their tests & eventually ran out of money. It would appear to me that they were simply mismanaged. Completely irrelevant to RHY.

Molecular/DNA tests cannot compete with a simple blood test in terms of cost. Therefore, these tests are unlikely to become mass screening tests. And as such, this may scare off health funds/insurers from adopting such tests. I have already touched on the infrastructure requirements, but there is also the need for more blood than RHY's test. RHY's competitive advantages are that ColoSTAT is low-cost, lends itself to becoming a mass-screening test and utilises existing infrastructure found in most labs worldwide.

As for the CR, I never said that there wouldn't be a CR at some stage. I addressed your point about the potential need for one prior to Study 7 kicking off. Given that the first patient is going to be recruited in Q1 2019, I stick by my suggestion that they are well-funded up to & including clinical trials (I also think you have underestimated their cash).

Lastly, I am under no illusions as to what RHY is and the risks involved. It is a speccy biotech stock. They have a clear strategy and are executing on that strategy. If, and it is a big if, they manage to achieve all their milestones, it is fair to expect the SP to reflect an EV of more than $8m in 12-18 months time. That's the punt anyway. I waited patiently for a year to invest in this company. I wanted to see how they managed their cash while achieving their milestones. From a risk perspective, one could wait another year or so and then pull the trigger (if they manage to commercialise and create positive cash flow). At that point, they are actually a company and will be valued based on that cash flow. Until then, it is a speccy punt.