Considering how hard it can be to value a speculative biotech company, its useful to use relative valuation by comparing to its peers.
Comparing a company like PBT to IVX there's a difference in market cap of more than $400mil.
Invion (IVX) currently has 3 phase II trials in Lupus, Asthma and Smoking Cessation (COPD). Interim results for the Lupus trial is due out any day now. Market cap around $42mil. Around 460mil shares outstanding. High quality management and board. Its only concern is cash. But if the lupus trial results r positive capital will be able to be raised at much higher price, or maybe not at all.
Prana Biotech has 2 phase II trial results due out soon. No arguments its got huge potential and great science behind it, and they appear to be the leaders in the field of neurodegenerative drug developement. But IVX is one of the leaders in autoimmune drug developement, with almost just as large potential market size, and yet its market cap is tiny in comparison.
What am I missing? IVX has very little on the sell side atm. It can run very hard very fast. Its up over 30% over the last few days. Watch this one
