Re: RVX ...looking bullish
in response to
by
posted on
Aug 17, 2015 09:08PM
To your point SF regarding continual communication with the investor base, if one checks the Esperion website you will see that their investor day webcast was on July 30th. Further to this, I think it would be highly beneficial for the RVX business staff to check out the Esperion website to see how a biotech company should package and manage their communications with investors. They should especialy note the 18 webcasts and and corresponding presentations available for viewing by investors as well as the coverage of Esperion by 9 analysts from credible investment houses. This level of professionalism and commitment to the investing community by Esperion makes RVX in comparision look very amateurish at best. Perhaps this is a contributing factor to the huge market cap discrepancy, and share price performance since inception, between the two companies with ESPR coming in at about $1.5 billion USD while RVX sits at about $170 million CAD.
Following Esperion, I have also noted that Esperion CEO Roger Newton seems to be careful about making statements which are accurate with respect to, among other things, timelines. Don McCaffrey could certainly take a few pointers here. I think the fact that DM's statements have been innaccurate wrt outcomes burdens RVX SP, and thusly the market cap, with a discount as investors are hard pressed to make decisions based on what he says and many prudent investors stay on the sidelines taking a "wait and see" approach to RVX.
IMO RVX's science holds a lot more earning potential than that of ESPR and it is sad to see its' current share price hobbled by inept management. To be fair ESPR's NASDAQ listing is a big advantage to attracting investors as well as to date it's cleaner trial performance. I also think that the ESPR science is not as "out of the box" as RVX's which probably makes it a safer bet for some. (BearDownAZ, if you read this I would like your opinion as to whether or not my characterization of the science differences is accurate). I still think that consistant performance by RVX management wrt the investment community could go a long way to closing the market cap difference in a significant way. It is hard to find a biotech going into ph3 with a valuation cheap as RVX. This despite the huge upside potential should ph3 be successfull.
I suppose the positive flip side to all of this is that I believe that BETonMACE will likely demonstrate that RVX-208 is an effective treatment for its' target patient group and this will result in a large increase in valuation inspite of RVX's management. I also believe that in the event of BETonMACE success RVX will be taken out by a Pharma and we will be rewarded for our patience at that time. I can't imagine RVX ever trying to take RVX-208 all the way to market as they would never have the infrastructure or management expertise to do so effectively in an anywhere close to timely manner. This particular point is not a knock on management, it is just reality.
All JMO