What CEO doesn’t “feel” his suffering share pricing? Managing share pricing starts outside the office! Adding value entails reducing the perceptions of risk. History is a great teacher; I remember one CEO who stated his role was to manage the share price and then the company initiatives. He was totally committed with his energy and efforts reflecting this dedication. There wasn’t anyone he did not know or try to be in contact with and he always delivered or explained why and what he could or not do with his platform and strategy. He built confidence by listening and continually evolving his strategy to strengthen his investor base and share price! So, what is the solution?
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Unfortunately, many small cap healthcare companies have over-exposure to warrants, options and preferred stock of past toxic financings that are baggage still burdening their viability, stock pricing and needed future financings. Valuing some capitalizations or “market caps” assumes a comparables or peer estimate of a company’s value versus – perceived – future prospects. Calculated as the number of shares outstanding (as opposed to authorized) times the price per share; however, market capitalization should – NOT -
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How do we define the differences between justified risks and irresponsibility? Boards of Directors (BODs) have responsibilities but, are they exercising their proper fiduciary role in monitoring enterprise development, risk definition and shareholder interests?The financial crisis has heightened the issues of sustainability. BODs of small cap companies are now subject to even more risks associated with …
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The ongoing economic crisis had made bankruptcies; one of the newest “EXIT” strategies for many emerging small cap healthcare companies. The companies most at risk have less than 6 months of cash and usually no “definitive” clinical data in the near future. It has been stated that 25% of emerging small cap healthcare companies (usually biotechs) fall into this category of teetering on the edge. Is one of the issues the plethora of “me to” platforms?
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Blogging is reshaping the web impacting the dissemination of new conviction ideas. It is shaking up markets and journalism enabling millions of people to have a voice and connect with others. I blog to add commentary, update news flow and insightful opinions that are intelligent, fit – to print and SEC – compliant. Wall Street has dramatically slashed its ranks of analysts providing research but, scientific platforms and industry sectors need to be better researched for conviction ideas. As an industry veteran, I am continually mortified about the gross inaccuracies of message boards that deal with fiction, inaccurate prognostications and rants. The role of my internet blogging, I believe increases transparency.
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Biopure – the Cambridge based biotechnology company – founded in 1984 (NASDAQ: BPUR) filed for Chapter 11 (7/16/09). Biopure developed pharmaceuticals, called oxygen therapeutics, that are intravenously administered to deliver oxygen to the body’s tissues. BPUR failed amid numerous regulatory setbacks – and should have known – then – there are no magic acts in this business! BPUR has now entered into an agreement with OPK Biotech LLC for the sale of all of its assets. Note, if the proposed OPK Biotech LLC transaction closes (as stated) there will be limited, if any, value for the common stockholders in the bankruptcy liquidation process – the filing lists total assets of $5.06 M and total debts of $2.72 M.
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I was left scratching my head about yet another recent biotechnology Chapter 11 bankruptcy or should I have been? Company “X” had 2 FDA approved products, revenues, a traction able market with a sales force. As one of – many – who have sought protection; should “X” be considered just … bad luck in bad times …? They “seemed” to have been “more than a glass half full” as compared to many public healthcare small-caps – especially by having a “been there and seen it before” board. I shouldn’t say I am surprised, I have seen it before – however, the ability to cut costs and execute new directions involves another set of skills.
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Private investment in public entity (PIPE) healthcare related financing are still happening … very slowly but are not dead. The instability that has rocked the investment banking industry over the past two years has maintained the “sweet spot” for the existing PIPE firms. Over the past six (6) months, 251 (215 registered PIPES and 36 described as offerings) transactions included 161 closings and 90 filed with …
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This is the time to redouble and triple investor outreach. The economy seems to have made a bottom and the consensus is the worst is behind us. Yet, many companies think that pulling back not pushing out is the way forward. In this market, it is all about relationships! With the disappearance of many brokerage firms and analysts, it is even more crucial to develop external investor access.Start by defining a constituency …
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Hedge funds, money managers and private equity firms which had been the new homes of departing analysts have been hammered by depreciation, redemptions, closures and mass investor exits leaving many escapees from the investment and research side left by the side of the road. Money managers have also experienced multiple rounds of job losses but, redemptions have slowed.
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