It's pretty simple, pSivida offers incredible product growth potential for any Large Pharmaceutical company. Why?
1). The new frontier for large Pharma is biological drugs.
2.) There is tremendous difficulty in administering these drugs to specific sites in the body
where needed; thus the need for sustained release.
3). Sterilization is a problem, and in and of itself can adversely effect the drugs efficacy.
4). The appropriate delivery platform has yet to materialize.
5). Tethadur, pSivida's platform delivery system for biologics, fits the bill for all these issues
and is on the threshold.
Any large Pharma looking into sustained release, can capture pSivida's technology by simple acquisition, therefore creating synergies with their own existing product lines; by creating biobetters. The technology gaps that existed prior is diminished in a massive way. Value creation is almost immediate by pharma standards. Most importantly, the acquiring company gets this valuable technology early in the life cycle of this burgeoning market, moving the technology forward with massive capital intensity, effort and immediately into the clinical setting with drugs that are already well understood.
No one knows how Paul Ashton is dealing with the evaluation agreements for pSivida's technology. We do know that few company's are out there claiming the ability to deliver these drugs in a sustained way. I've always said that time is really of the essence here, I trust Dr. Ashton. As Scott Matusow stated in his article in SA yesterday, he's "conservative to a fault". But if you had this technology and were working for global pharma's in an effort to demonstrate a billion dollar delivery platform, wouldn't you be tempered? I probably make the company nuts here, but 2014 will be the pivotal year for this little gem of a company and it's technology.
Wallstreet. PSDV has multiple platforms and it seems they can incorporate them together. Medidur is what Iluvien is, Durasert is what they are working with PFE on, and can be bioerodible and lastly Tethadur is a fully bioerodible biosilicon, capable of delivering the complex biological drugs; this is PSDV's most exciting platform which they've got tech agreements with the globals on. Durasert appears to be able used systemically, additionally is the platform being evaluated in orthopedic applications. PSDV has ample cash having just completed a raise this past summer, no debt.
Jen, Personally, non of that bothers me. I'd just pick up more shares on the dip. Last year's end dipped and I bought a bunch at $1.38. I have no regrets about that now, if it happens again, I'll repeat the process. You have to play it however you think, I know it's a bit rattling. Just remember that there will be upside in the coming months. I'm on IR about news all the time, they know what it means to investors. Regardless, I buy those dips and lick my chops, there is no reason to sell on the fundamentals. Good luck and hang in there if you can.